Has an OCTG inventory overhang built up in Saudi Arabia?

摘要

Last month we commented on the absence of KOC over the past year from significant OCTG purchasing due to an inventory overhang. MBR learns now though that KOC are set to enter the market in April with a significant tender for OCTG. The bulk of this material is thought to be API grades and this new tender will amount to around 150kt. KOC, as with some other major NOC's in the region, keeps very high stock levels of OCTG (around 50-75% of their demand per year is kept as inventory compared to a level of around 20% for most other major IOC's) so it is difficult to determine at the moment how much of this new order will be required for new drilling activity as opposed to how much will go for inventory.