The oil country tubular goods (OCTG) market in Indonesia will register a CAGR of more than 4% by 2023.
Declining raw material prices to drive market growth. Iron ore and steel scrap are used as raw materials for the preparation of steel. The demand for steel is highly influenced by the fluctuation in prices of iron ore. Moreover, the demand of steel scrap is directly proportional to the prices of iron ore. Hence, with low iron ore prices, the demand for steel scrap is also low.
Market Overview
Rise in offshore E&P activities
To increase the production of oil in Indonesia, E&P activities are being shifted from onshore to more remote and technically challenging locations like deep-water locations in eastern Indonesia. This has increased the demand for oil country tubular goods (OCTG) market in Indonesia.
Rise in adoption of renewable sources of energy
The use of renewable energy sources has increased across the world, owing to the increase in clean energy initiatives and subsidies for power generation from sustainable resources. This has affected the oil country tubular goods (OCTG) market in Indonesia.
Competitive Landscape
The market appears to be fragmented and with the presence of several companies including Tenaris and TPCO Pan Asia, the competitive environment is quite intense. Factors such as the rise in offshore E&P activities and the declining raw material prices, will provide considerable growth opportunities to oil country tubular goods market in Indonesia manufactures.
Citra Tubindo, Hunting, NIPPON STEEL & SUMITOMO METAL, Telaga Mas Mulia, Tenaris, and TPCO Pan Asia are some of the major companies covered in this report.