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.
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 MillerRead more from Laura Miller
Latest in Steel Products Prices North America
HRC vs. CRC price spread jumps in second week of new year
The spread between cold-rolled coil (CRC) and hot-rolled coil (HRC) prices jumped during the week of Jan. 8 as cold rolled tags continued to rise while hot rolled tags held steady.
Cliffs increases sheet prices again, seeks $1,150/ton HRC
Cleveland-Cliffs is now targeting base prices of $1,150 per ton for hot-rolled coil (HRC), according to a press release on Wednesday morning, Jan. 3.
Cliffs moves sheet prices higher, seeks $1,100/ton HRC
Cleveland-Cliffs is now targeting base prices of $1,100 per ton ($55 per cwt) for hot-rolled coil (HRC).
SMU price ranges: Sheet surge continues on limited spot availability
Sheet prices shot higher again this week on the heels of another round of mill price increases as well as on reports of production and supply chain issues at certain domestic producers.
Galvanized Sheet’s Premium Over Hot Rolled Hovering Around $200/Ton
The spread between hot-rolled coil (HRC) and galvanized sheet base prices has been hovering near $200 per net ton since late July, according to SMU’s latest analysis.