Oil and gas companies increase demand for metal products

Producers of pipe products, demand for which reduced after 2011, again increase the volume of orders. Due to launch of new projects in the oil and gas industry - pipelines Power of Siberia, the second string of Bovanenkovo ​​– Ukhta and Central Asia – China, in 2013 the consumption of pipes grew from 9.43 million tons to 9.7 million tons. According to analysts, namely oil and gas projects will be the driver for the pipe industry in the coming years.

Shipment
According to the Development Fund for the pipe industry, Russian pipe companies sell from 65% to 75% of its production in projects of pipeline transport and production of hydrocarbons. That is why the completion of major oil and gas projects sensitively affects producers of pipes. In the period from 2009 to 2011, the consumption increased from 6.2 million tons to 10.4 million tons, as a number of pipeline projects - Nord Stream, Sakhalin - Khabarovsk - Vladivostok, Eastern Siberia - Pacific Ocean (ESPO) and Baltic Pipeline System-2 (BPS-2) - were implemented. However, after completion of their construction by results of 2012, the consumption of pipes decreased to 9.43 million tons. The market recovery began in 2013, when the demand for large-diameter pipes (LDP) increased due to such projects as Bovanenkovo ​​- Ukhta, South Stream, Central Asia - China. Last year, the consumption amounted to 9.7 million tons. In January-July 2014, the growth was 1.4% as compared to the same period in 2013.