Tenaris to raise US output over OCTG duties

Tubemaker Tenaris plans to lift its US production to avoid paying antidumping duties imposed by the US government on tubular inputs from Argentina and Mexico.

The company said on 3 November that it will be required to pay antidumping duties of 78.3pc for oil country tubular goods (OCTG) imports into the US from Argentina and 44.93pc for imports from Mexico. The company has been pre-paying the duties since 11 May.

The company will increase its tubular production in the US in response to the duties, chief executive Paolo Rocca said on the 4 November earnings call.

The company operates 11 manufacturing sites and four service centers in the US, and another two manufacturing plants in Canada, according to its 2021 sustainability report.

The company expects global OCTG demand to surpass pre-Covid-19 levels in 2023, buoyed by increased drilling activity and pipeline investments in Argentina and the Middle East.

Tenaris sold 750,000 metric tonnes (t) of seamless tubes in the third quarter, an 11pc increase over the prior year. Compared to the second quarter's 815,000t of sales, seamless sales were down by 8pc.

Welded sales volumes increased by 49pc over the prior year to 106,000t, and increased by 41pc compared to the second quarter's 75,000t of sales.

Tenaris earned a profit of $606mn in the third quarter, up by 84pc from the prior year.

By Rye Druzin