Producers to keep seamless pipe prices unchanged till year end

摘要

Mills' prices for 57-159 mm HR seamless pipes made to GOST 8731(32)have stayed stable in September.The situation in the Russian oil and gas sector remained favourable in August.Despite negative expectations, Russian companies maintain high production ofhydrocarbons. In January-August, oil and gas condensate output grew by 1.2%from the similar period of last year, to 339 mt. Natural gas production went up by5.1% to 442 billion cu m during the first eight months as compared to last year.Oil and gas extraction is unlikely to slow down soon, total results this yearexpected to increase. Thus, gas production is forecast to reach 665 billion cu mthis year, being 2.2% up y-o-y; that of oil is forecast to go up by 0.8% y-o-y to509 mt. Russian producers have maintained supply of seamless pipes to oil andgas companies at a high level of 110,000-120,000 t. Metal Expert estimatesconsumer activity in the oil and gas sector of Russia will seasonallyincrease by the end of the year, enabling mills to step up operating ratesof facilities producing seamless pipes with high added value.