NorthAm OCTG market remains tight: Vallourec

French tubular maker Vallourec expects the oil country tubular goods (OCTG) market in North America to remain tight into next year.

The company forecast tight supply conditions continuing in the region.

The Argus West Texas Intermediate fob Houston price has remained above $80/bl for most of 2022, and has been buoyed by supply shocks related to the war between Russia and Ukraine. It has fallen by 37pc since hitting a peak of $127.81/bl in early March, down to $80.22/bl yesterday.

In its Asia, Africa, Europe and the Middle East regions, volumes are expected to continue recovering, particularly in the Middle East, the company said.

South American prices and volumes are expected to rise, while European gross domestic product is expected to decline as high energy costs weigh on the region's economy.

Vallourec shipped 462,000 metric tonnes of tubular products, an increase of 18pc from the prior year.

It earned a profit of €6mn ($6.2mn) in the third quarter, compared with a loss of €7mn in the same period of 2021.

By Rye Druzin