Steel Products Prices North America

Tenaris Expects Higher Sales on Rising OCTG Demand

Written by Laura Miller

April 28, 2022

Driven by strong OCTG demand in the Americas and higher line pipe shipments in Europe and South America, steel tube producer Tenaris saw a 15% sequential rise in first quarter sales to $2.367 billion. Sales were double that of the year-ago quarter.

Higher pricing, increased drilling, and falling inventories drove a 20% sequential rise in Q1 North American sales to $1.347 billion.

The Luxembourg-based steel tube producer’s Q1 net income of $503 million was 50% higher than the fourth quarter of 2021 and 400% higher than Q1 2021.

Tenaris

Globally, Tenaris sold 772,000 metric tons of seamless pipe and 50,000 metric tons of welded pipe in Q1. While seamless sales were up 6% from Q4 2021 and 56% over Q1 2021, welded tube sales were down 26% quarter-on-quarter and 29% year-on-year.

Tenaris expects increasing sales for the remainder of the year, propelled by higher volumes in the Middle East and South America. OCTG demand within North America is expected to rise 57% over last year to 5.5 million metric tons in 2022. Globally, the company expects a 21% year-on-year increase in OCTG demand to 14.1 million metric tons.

In its Q1 earnings report, Tenaris noted that the invasion of Ukraine by Russian forces is changing the global energy outlook, with higher oil and gas prices and lower production levels not keeping pace with demand.

With operations in 16 countries, Tenaris is a global manufacturer of pipe and related services serving the energy and industrial sectors. Its annual steel pipe manufacturing capacity is 4.7 million tons of seamless pipe and 3.2 million tons of welded pipe.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

Read more from Laura Miller

Latest in Steel Products Prices North America