Vallourec expects higher tubular demand in Brazil in 4Q

French tubular steelmaker Vallourec expects Brazilian demand to pick up in the fourth quarter, while oil and gas demand in the US is expected to decline.

The company expects increased demand in the fourth quarter and into 2020 from Brazil due to an increase in offshore oil and gas drilling.

In the US, shipments and prices are expected to fall in the fourth quarter as oil and gas companies cut back investments.

Vallourec's sales increased by 2pc to 595,000t (656,000st) in the third quarter compared to the prior year, driven by higher oil and gas volumes in the Middle East and Asia.

For the first nine months of 2019, sales volumes increased by 6pc to 1.77mn t compared to the prior year.

Vallourec lost €60mn ($65mn) in the third quarter compared to a loss of €92mn in 2018.

By Rye Druzin