Investor Presentaiton
US Market Environment
TMK
US Distributor Welded and Seamless OCTG Prices
Quarterly Average
2,375
2,250
2,125
US$/Metric Tonne
2,000
1,875
1,750
1,625
1,500
US Average Raw Material Costs
Quarterly Average
300
800
700
600
500
gggg
US$/Metric Tonne
400
655
737
730
494
499
447
200
1,375
1,250
Jan-12
100
0
Jul-12
Dec-12
Jun-13
Dec-13
Jun-14
Q2 2013
Q1 2014
Q2 2014
Seamless OCTG Prices
■ NYMEX HRC Midwest Spot Price ■Raw Material Scrap for Smls
Welded OCTG Prices
Source: PipeLogix
Average distributor welded OCTG prices decreased 1.4%
YoY but increased 0.5% QoQ, while seamless OCTG prices
declined by 1.7% YoY but went up by 1.5% QoQ
Spread between welded and seamless prices increased from
16% to 17.2% QoQ
There is further indication that prices have bottomed-out
American division expects prices to gradually increase during
2H 2014 as inventories of low priced imports are consumed
Source: AMM
Average HRC prices increased 12.4% YoY and 2.8%
QoQ, while average scrap prices for seamless rose by
11.4% YoY and 0.5% QoQ
HRC supply disruptions during 1H 2014 put upward
pressure on HRC prices (up 8.6% compared to 1H 2013)
Steady demand, planned domestic outages and tight
inventories at service centers suggest there will be no
relief in market prices during 2H 2014
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