Steel Mills
Tenaris: Pipe Outlook is Improving
Written by Sandy Williams
April 29, 2021
Steel tube producer Tenaris saw global sales increase 5% sequentially to $1.18 billion in the first quarter of 2021, but results were still down 33% year-over-year. An 8% increase in volumes was offset by a 5% decrease in selling prices.
Sales jumped 31% in North America as drilling activity picked up during the first quarter. Drilling activity in Canada is subject to seasonality but is currently higher than it was a year ago. Drilling has hit bottom in the Eastern hemisphere, said Tenaris, but is expected to improve later this year.
Seamless tube sales rose 17% sequentially to 496,000 metric tons, but were 25% below sales in Q1 2020. Welded tube, at sales of 71,000 MT, plummeted 31% sequentially and 58% from a year ago, the company reported.
“Although the COVID-19 pandemic is still deeply affecting many countries in the world, particularly in Latin America where we have a significant proportion of our operations, the global economic outlook is improving as vaccination programs progress and fiscal stimulus programs are implemented,” said the company in its press release. “Oil prices are stabilizing around $60/bbl and inventories are returning to more normal levels as global consumption is increasing along with industrial production and mobility, while OPEC+ countries continue to contain production levels.”
Sales recovery in the second quarter will be led by North America and other regions in subsequent quarters. Price increases are expected to offset higher raw material costs. Chairman and CEO Paolo Rocca said during the earnings call that if rig counts continue to rise and HRC prices remain at the same or lower levels there will be room for additional price increases for pipe.
Tenaris is preparing for higher North American demand by hiring an additional 1,000 employees at its U.S. facilities. The Sault St. Marie Canadian industrial operations will be consolidated, and Tenaris plans to expand the size range of steel bars at Koppel, Pa., to supply its Bay City, Texas, mill.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.
Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.
Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.
ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.