MRC Global October 2017 InSight

Asia Pacific

In the Asia Pacific region, the market is relatively slow in response to the extended period of low oil prices. The market remains competitive as manufacturers work to keep their plants loaded in the face of reduced demand. Lead times are short, including for engineered products, and commodity items are in oversupply. Therefore, many commodity suppliers are positioning themselves to deliver engineered goods to move up the value curve.

We believe we have seen the bottom of the market in the Asia Pacific region. A further period of stable oil prices could create opportunities for brownfield expansions.


MRC Global continues to support our customers in areas where they are active and invest in future opportunities as they arise.


CAPEX spending for major IOCs remains subdued; however, discussions on major projects are gaining momentum, as evidenced by an uptick in EPC FEED enquiries.

China’s demand for natural resources is the “engine room” for Asia Pacific in terms of customer investment and market size. While this demand has been flat in recent years, investment levels remain comparatively high with significant new investment in chemical production, gas networks, LNG terminals, airports and other major infrastructure.

China is the world’s largest chemical market, and MRC Global is expanding its China presence in 2017 to address this market as well as the overall energy market opportunities in China. MRC Global continues to support our customers in areas where they are active and invest in future opportunities as they arise.