PCK Receives Over 161,000 Tons of Pipe Orders in Q1

In the first quarter of 2019, PCK Steel Pipe Group received orders for over 161,000 tons of new steel pipe. The Group has recently received new orders and has secured approximately 35,600 tons of steel pipes from an independent third party, China Petroleum & Chemical Corporation (Sinopec). These orders include the supply of steel pipes for Sinopec's domestic oil and gas pipeline network projects, such as the Rizhao Port-Jingbo Oil Transmission Project, West Guangdong Pipeline Network, and Qingning Gas Transmission Pipeline Project. The delivery of these orders is expected to take place during 2019.

The Group's joint venture in Saudi Arabia recently received a new order for steel pipes from Saudi Arabian Oil Company (Saudi Aramco), an independent third party. The order is for the supply of approximately 26,248 tons of steel pipes for its Saudi Aramco Marjan Project.

Sinopec's successive orders for steel pipes indicate a recovery in domestic demand for steel pipes. This is expected to bring more projects to the steel pipe industry as the 13th Five-Year Plan for the National Economic and Social Development of the PRC continues to progress.