This month we unraveled the inventory riddle. As you would expect, there’s a whole lot more to this critical task than reading ‘Texas Tea’ leaves! Our inventory survey, designed to measure the demand for OCTG, encompasses the entire supply chain. Thus, we count pipe at truck terminals, mills, processors and inspection yards across 48 states every quarter.
While our April Report reveals a host of minute details, the bottom line is that inventories of “prime” pipe rose in Q1 2012. Taken out of context the news of an inventory increase could be perceived as a negative in what might be called a tricky transition period, but let’s not forget “every cloud has a silver lining.” So will April showers bring May flowers? Our forecast bodes well for the short term.