Exclusive OCTG pipe prices in North America remained stable in October

Quotations for welded pipes in Turkey fell by $8 per tonne over the same period under pressure from regulatory measures

The average price of OCTG pipes on FOB terms in North America remained largely stable in October at $2,191/t, although there was a brief increase to $2,218/t in the second half of the month. According to Kallanish, the stabilization of OCTG pipe prices is linked to negative market sentiment regarding short-term investments in drilling, although market participants are more optimistic about the long-term outlook.

Pipe manufacturer Tenaris describes current market conditions as promising in its report. At the same time, much depends on energy prices and investment plans in the drilling sector.

At the same time, raw material prices and the situation in the US oil and gas industry do not give cause for strong optimism. In October, WTI prices fell by 2.6% to $60.9 per barrel, following a 2.2% decline in September.

In addition, according to Baker Hughes, the number of active oil and gas rigs fell by three last month to 546, after an increase of 13 in September. This trend is more characteristic of the current market situation, as a decline has been recorded since the beginning of the year.

Quotations for Turkish welded pipes in October were under pressure from domestic and European regulations. According to Kallanish, prices for this product fell by $8 last month to $568/t (Turkey FOB). This price trend fully correlates with the change in prices for hot-rolled coil on Turkey FOB terms, whose average quotations in October fell by $5 to $533/t.

The recent change in the domestic processing regime (DIR) has led to an increase in costs. It should be recalled that, since October 1, exporters of certain types of products in Turkey have been required to purchase at least 25% of the raw materials/semi-finished products necessary for their production on the domestic market. This requirement increases the costs of local pipe manufacturers, who often use imported HRC when domestic prices are uncompetitive.

In addition, uncertainty about CBAM exacerbates these problems and increases buyer caution—few want to buy imports, so they have to either sell cheaper or offer a delivery basis with delivery to a specific point.

In January–August, Turkey’s welded pipe exports totaled 1.31 million tons (down 1.4% year-on-year), while export revenues fell 9.7% year-on-year to $1.14 billion. During this period, Romania was the largest destination for welded pipe exports from Turkey, accounting for 212,000 tons.

It should be noted that Interpipe is expanding its presence in the mining industry product segment. The company fulfilled a trial order for a French manufacturer of drilling tools, supplying linear pipes in accordance with European standards. Earlier, it was reported that Interpipe had manufactured pipes for underwater operation in shallow water for the South Akçakoca Sub-Basin (SASB) gas field in the Black Sea for the first time.