WSP Holdings, a major Chinese producer of oil country tubular goods (OCTG) reported a net loss of $27m in the first quarter (Q1) of 2010, due to low demand in both its domestic and international markets, Steel Business Briefing learns from its Q1 report.
“We expect to see a recovery in sales volume and prices in the second half of 2010 from the current low level driven mostly by domestic demand,” Piao Longhua, chairman and CEO of WSP said in a company release.
The Q1 $27m loss compares to a net profit of $21.4m in Q1 of 2009 and a net loss of $15.5m in the fourth quarter of 2009, WSP told the New York Stock Exchange where its shares are traded.
In Q1, WSP’s total sales volume (mainly API & non-API OCTG, green pipe and billet) was 81,665 tonnes, down 36% year-on-year. This includes 30,417 t of API products, down 70%, 3,327 t of non-API products, down 81% y-o-y and 47,921 t of other products, up 524% y-o-y. The company’s 13,406 t of exports in Q1 plunged 78% y-o-y, due to the weak economy and the trade protectionism cases in North America.
WSP says it has developed some new markets in Russia, Uzbekistan and South America. The company revealed it received contracts to supply approximately 1,100 t of green pipes to a project in Russia, along with 10,000 t, 3,500 t and 21,000 t of API products to projects in Uzbekistan, Ecuador and Venezuela, this year.