It’s the end of the third quarter, time to kickoff our exclusive inventory yard survey with the goal of measuring demand for OCTG throughout the entire supply chain across the lower 48. The name of the game this time around is “escalation,” as inventories of prime pipe rose Q/Q. Our October 2012 Report goes into great detail.
By all accounts it appears we’re toughing it out in the early stages of a trough. You might say we’re experiencing a “World is Flat” syndrome: flat economic growth, flat job market, flat energy demand. All of this has a dampening effect on the overall market sentiment in the short term.
So do we sit back and snatch defeat from the jaws of victory or do we put on our game face and throw a ‘shale’ Mary with the hope of ending the year on a positive note? “‘Shale’ yes!” we proclaim while drilling down a little further to remind ourselves that 2012 OCTG consumption is on target for record tonnages in excess of 6 million. And that folks is nothing if not a game changer!