Vallourec mentioned that Oil Country Tubular Goods (OCTG) and other related pipelines could meet current oil and gas market demand. Before the implementation of Section 232 tariffs and import quotas, local distributors have already replenished large quantities of stocks, so recent demand was quite calm.

However, market participants expected market demand recovery, and Section 232 was beneficial to US steel mills. Based on current situation, the price of hot-rolled plate in the fourth quarter should be stable.

On the other hand, the price of ERW welded oil pipe has risen sharply due to soaring cost of HRC, but plate cost increase of seamless pipe was moderate. Therefore, Vallourec said that some ERW steel pipe buyers considered price increased and turned to purchase seamless pipes, also US trade policy benefited the company from US oil industry recovery.