Wave the checkered flag: the results are in on our Q2 2013 OCTG inventory yard survey. As we rev up for the second half of the year we’re pleased to announce that inventories are on the right track, which is to say: shifting down. As our subscribers know, we pull out all the stops for our quarterly surveys: tracking demand for OCTG throughout the entire supply chain.
To insure the most accurate results we involve a crew of people who count pipe at truck terminals, mills, processors and inspection yards across the lower 48 every quarter. Complete details of our survey results can be found in our July Report launched on the 23rd.
Changing course for a minute, let’s talk about the elephant in the oil patch: that weighty issue called imports. No longer idle chitchat; in early July a coalition of domestic OCTG producers filed one of the largest steel trade cases in years against nine countries. The space we have here limits our discussion on this matter so we’ve included some FAQs on page 9 of July’s Report. Suffice it to say, there’s a lot riding on this. A favorable ruling by the ITC would restore a level playing field, offering an improved climate for OCTG pricing and helping to keep inventories in check.
We close our survey where the rubber meets the road noting that U.S. apparent consumption and months of supply are both in a good place, paving the way for a strong finish to the year.