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US tubular volumes expected to slow in 3Q, then rise

  • : Metals, Pipe and tube
  • 23/08/09

Tubular makers in the US, including pipemaker Tenaris, France's Vallourec, US Steel, and pipe distributors expect some uplift in demand in the fourth quarter after enduring a long slowdown throughout 2023.

Integrated steelmaker US Steel, which operates an electric arc furnace (EAF) seamless pipe mill in Fairfield, Alabama, expects lower volumes in the third quarter as chief financial officer Jess Graziano said on a 28 July earnings call that high inventories of around seven months will keep demand tamped down.

"In the very near term, let's call it [third quarter] volumes, [we expect] probably weaker [volumes] sequentially, but we do expect as the restocking happens out to the end of the year we'll get back to 120,000-130,000 short tons (of pipe shipments) per quarter as we see that inventory rebalance," she said.

French tubular maker Vallourec expects its US volumes to fall in the third quarter before rising in the final quarter of 2023. Prices are expected to stabilize in the second half of the year, according to a 28 July earnings release.

The Argus line pipe index has dropped by 27pc to $2,743/st (42,449/metric tonne) in July from its peak of $3,783/st in May 2022.

Distributors have blamed falling prices on high inventories as they fight for business in a supply saturated market.

The Argus oil country tubular goods (OCTG) all items average index has fallen to $2,735/short ton (st), a 29pc drop since hitting its peak of $3,867/st in October 2022. Seamless OCTG average prices were at a $352/st premium to welded OCTG.

Drawn by the high prices of late last year, US OCTG imports are up by 33pc and line pipe volumes up 21pc in the first six months of 2023 compared to the same period last year, according to data from the US Department of Commerce.

The OCTG trend showed some signs of abating as year-over-year import data for May and June was off by 14pc and 17pc, respectively, while line pipe imports slipped by 2.7pc and 1.7pc, respectively, in April and May, before jumping by double digits in June.

Global pipemaker Tenaris expects US oil and gas drilling may bottom out by the end of 2023 after slowdowns related to upticks in imports and OCTG inventories. Still, chief executive Paola Rocca expects third quarter volumes to fall as improved OCTG production at Tenaris' own mills allowed it to pull forward volumes into the second quarter.

Tubular distributor DistributionNOW (DNOW) expects rig counts to flatten out in the second half of 2023 after declining since the fourth quarter. Active drilling rig counts peaked at 784 for the week ending 2 December, 2022 and have since declined by 120 rigs, or 16pc, since then to 659 rigs for the week ending 4 August, according to data from oilfield service company Baker Hughes.

"In the US, we expect [third quarter] revenue to be flat [because of] US rig count headwinds and project mix," chief executive Dave Cherechinsky said on an earnings call on 2 August.

Rob Saltiel, chief executive of MRC Global, said large inventories have been built at multiple customers that will flatten the revenue from the company's gas utilities division through the rest of 2023.


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25/02/14

Aperam’s stainless steel deliveries fall on year in 4Q

Aperam’s stainless steel deliveries fall on year in 4Q

London, 14 February (Argus) — Luxembourg-based global stainless steel producer Aperam's stainless and electrical steel shipments fell on the year in the fourth quarter owing to a sharp contraction in demand. But its deliveries recovered on a quarter-on-quarter basis as the European market did marginally better, while Brazil recorded better than expected demand. Aperam's stainless and electrical steel shipments fell by 1.5pc year on year to 401,000t in October-December. Fourth-quarter shipments rose by 2.56pc relative to the third quarter, with full-year 2024 sales registering a 4.9pc rise to 1.626mn t. Higher 2024 shipments can be attributed to the low base of 2023 driven by downstream distributor destocking. Aperam's stainless and electrical steel segment's adjusted earnings before interest, tax, depreciation and amortisation (ebitda) rose to €42mn in the fourth quarter, up from a loss of €34mn over the same period in 2023. Revenues for full-year 2024 nearly doubled to €175mn, up from €92mn in 2023. Shipments in the group's services and solutions segment rose by 9pc on the year in the fourth quarter to 169,000t, with deliveries of alloys and specialties flat on the year at 10,000t. Scrap metal shipments in Aperam's recycling and renewables segment — including scrap processor ELG and the group's Brazilian entity Aperam BioEnergia — fell by 7.4pc on the year to 312,000t, but full-year volumes rose by 6.63pc to 1.464mn t. Aperam's overall adjusted ebitda in 2024's fourth quarter more than doubled on the year to €116mn, attributed to a record-high performance of its alloys segment with together with strong results at its Recycling & Renewables division. Aperam expects ebitda in the first quarter of 2025 to be at a lower level relative to 2024's fourth quarter. The group is also expecting significantly higher net financial debt in the first quarter owing to the consolidation of Universal Stainless & Alloy Products completed in recent weeks. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ReElement begins RE shipments, eyes Africa plant


25/02/13
25/02/13

ReElement begins RE shipments, eyes Africa plant

Houston, 13 February (Argus) — Critical minerals refiner ReElement Technologies began commercial shipments of magnet-grade rare earth (RE) elements, as it looks to scale operations by expanding an Indiana facility and deepening its presence in Africa. The Indiana-based company manufactured heavy and light RE oxides primarily from recycled feedstock sourced primarily from end-of-life permanent magnets used in wind turbines and electric vehicles at its 700m2 facility in Noblesville, ReElement commercial marketing officer David Sauve told Argus on Wednesday. ReElement did not disclose how much product has been sent to customers since shipments began last week, only noting that Noblesville, Indiana, has daily output capacities of 5-10kg for RE oxides and 15-25kg of battery-grade lithium carbonate. The company is transitioning operations to its 50,000m2 refinery in Marion, Indiana, which will be able to turn out 2,000 metric tonnes (t)/yr of RE oxides and 5,000t/yr of battery-grade lithium in either carbonate or hydroxide form when first-phase production begins by year-end, Sauve said. Marion will have the capability to process feedstock from ores, in addition to recycled sources. ReElement also entered into a partnership with South Africa-based Novare Holdings to invest $100mn in building out refining capacity of critical minerals in Africa. The companies currently are working to pick a location for their first facility, expecting to start developing the site in 2025's second half. Under the agreement, ReElement will provide its chromatography-based separation and purification technology, along with project management expertise, while Novare will supply funding and operational oversight. Capacity figures for the African plant have yet to be determined, Sauve said. Feedstock will come from local and regional sources. Joining the antimony rush ReElement plans to add antimony products to its suite of offerings, looking to capitalize on a high-margin opportunity and help fill a void after China banned shipments of the metal to the US. Prices for 99.65pc antimony metal have surged by more than 150pc since late August, when China first implemented export restrictions that effectively cut off supply from the world's largest source, according to Argus data. The company in late January expanded its relationship with a South Africa supplier from whom ReElement will source antimony-bearing ore to refine into antimony sulfide and antimony oxide. It already has processed ore samples into sulfide at Noblesville and expects to add commercial-scale production capacity at Marion. Sauve added that ReElement's modular technology could be co-located with "downstream manufacturers of antimony-containing military applications," as well. The company plans to take 1,000t/month of ore initially, saying that total could grow based on market needs. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Upper Mississippi River ice tops 5-year average


25/02/13
25/02/13

Upper Mississippi River ice tops 5-year average

Houston, 13 February (Argus) — Ice measurements taken Wednesday to gauge when barges can transit the upper Mississippi River exceeded the five-year average, according to the US Army Corps of Engineers (Corps). The annual Lake Pepin ice reports — taken by the Corps in February and March at Lake Pepin south of Minneapolis — are a bellwether for when barge transit can resume on the upper Mississippi River. This year's first report found ice at the lake was 19in thick on 12 February, 8in thicker than last year's measurement and 3in above the five-year average. The Corps' initial report last year found only 11in of ice at the lake, thin enough for waterborne traffic to break through. Subsequent reports were cancelled after the Corps said it would be too hazardous for crews and equipment to take additional measurements. Locks along the upper Mississippi River are anticipated to remain closed through 3 March, the Rock Island Corps district in Illinois said on 5 February. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

ACBL sets release dates for Illinois River lock


25/02/13
25/02/13

ACBL sets release dates for Illinois River lock

Houston, 13 February (Argus) — Major barge carrier American Commercial Barge Line (ACBL) has issued its earliest release dates for Illinois River barges planning to transit the Lockport Lock, which closed for maintenance last month. Release dates will be from 23 February through 19 March for barges expecting to pass through the Lockport Lock over the spring season, ACBL said Wednesday. The US Army Corps of Engineers (Corps) expects to reopen the Lockport Lock on 25 March, the Corps said when it announced the closure . The Corps closed the lock on 28 January to install new vertical lift gates and make repairs. The closure has cut off major trade hubs such as Chicago, Illinois, and Burns Harbor, Indiana, from Illinois River barge transportation. Lock 27 and the Mel Price Lock above St Louis will remain partially closed through 1 April, as they are also undergoing maintenance by the Corps, ACBL said. The barge line acknowledged higher demurrage rates were likely for those who loaded barges prior to the released dates. Initial transit on the Illinois River is also anticipated to have a significant backlog in the spring months. By Meghan Yoyotte ACBL's Illinois River release dates Origin Port Barges destined above Lockport Lock, on IL River Mobile, AL 25 Feb Houston, TX 23 Feb Weeks Island, LA 26 Feb New Orleans, LA 3 Mar Pittsburgh, PA 2 Mar Cincinnati, OH 5 Mar Decatur, AL 10 Mar Memphis, TN 10 Mar Evanscille, IN 12 Mar Cairo, IL 16 Mar St Louis, MO 19 Mar — ACBL Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US wholesale inflation holds near 2-year high in Jan


25/02/13
25/02/13

US wholesale inflation holds near 2-year high in Jan

Houston, 13 February (Argus) — Prices paid to US producers in January held at nearly a two-year high, another sign of mounting inflation pressures that may keep the Federal Reserve from lowering rates for longer. Prices paid to producers (PPI) rose by 3.5pc in January from a year earlier, matching the prior month's gain, the Bureau of Labor Statistics said today. Analysts surveyed by Trading Economics had forecast a gain of 3.2pc. The PPI number follows a higher-than-expected consumer price reading Wednesday which together reinforce the message that the Federal Reserve may hold off longer on rate cuts, especially in the face of potentially inflationary trade conflicts and migrant roundups under the new US administration. PPI excluding food, energy and trade services rose by 3.4pc in January following a 3.5pc gain in December. PPI for services rose by 4.1pc in January following a 4pc gain in December. Wholesale prices for energy were flat following a 2pc annual decline the prior month. PPI for goods rose by 2.3pc in January following a 1.8pc gain in December On a monthly basis, headline PPI rose by a seasonally adjusted 0.4pc, compared with a 0.5pc gain in December and a 0.2pc increase in November. Services PPI rose by 0.3pc in December, following a monthly gain of 0.5pc in December and a 0.1pc gain in November. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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