According to its second-quarter results, TMK shipped 1.98 million tonnes in the first six months of the year, compared to 2.1 million tonnes during the same time in 2014. 

At the same time, the U.S. rig count was down 36 percent, lowering demand for oil country tubular goods and leading to growing pipe inventories. 

However, Russia-based TMK said declining shipments were offset by stronger large-diameter pipe sales in its home country. Consumption of large-diameter pipe rose by 92 percent over the first half of 2014, it said, on account of demand tied to major oil and gas pipeline projects. 

Overall, the second quarter was profitable for TMK, which posted a net income of US$47 million, up from $30 million in the previous quarter. The increase was mostly attributable to a foreign exchange gain, the company said.

As the year progresses, large-diameter pipe sales are likely to contribute significantly to the bottom line, the company said. 

“For the full year 2015, TMK expects the LD pipe to remain a major driver in the Russian pipe market, offsetting weaker demand in other pipe segments, in particular, lower consumption of seamless and welded industrial pipe as a result of a slowdown in construction and machine building industries,” the company said in its quarterly earnings statement.  

“TMK believes (it) can further strengthen its position in the Russian OCTG market following its import substitution program.”

Meanwhile, American OCTG shipments are likely to remain tepid through the fourth quarter, it said. 

“TMK expects the end of the decline in the rig count in the fourth quarter and a gradual recovery in drilling activity thereafter. Additionally, OCTG pricing is expected to further decline in the third quarter of 2015 due to excess levels of inventory.”