Russia Oil Gas Magazine
  • SD UK

  • Rystad Energy: Russia-Ukraine Conflict Impacts OCTG Supplies

    This week, the Russia-Ukraine conflict is restricting global OCTG supply, particularly in the Middle East and USA. Nickel prices have also experienced aggressive rises due to the conflict in Ukraine. Lithium continues to rocket with prices now 118% higher than at the end of the year.

    OCTG

    The implementation of sanctions against Russia will block OCTG and linepipe exports globally

    The conflict has already restricted seamless OCTG and linepipe production in Ukraine and will reduce export in the short term.

    Both Russia and Ukraine are globally significant OCTG producers with supplies particularly important for Middle East and US markets.

    In the US, a combination of rising demand, increasing raw material costs, import quotas, high freight rates, and now supply outages is likely to provide further support to already high OCTG and linepipe prices in the US market. Revisiting the quota system for main suppliers could alleviate some of the additional cost burden.

     

    Marina Bozkurt, Senior Analyst

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