MRC Global InSight

Asia Pacific

The Asia Pacific region has continued to see better sentiment from the end user community, driven by continued stability in both energy prices, and the mining sector recovery in Australia. The APAC region’s engine room is Chinese demand, and the Chinese economy continues to grow, albeit at a steady rather than spectacular rate.

The main recipient of Chinese domestic demand is the Australian resources sector, which has recovered from previous market lows, and we are talking with more customers and their contractors about new greenfield projects and brownfield project work. Australian supply of lithium to global battery markets is providing some future opportunities for greenfield project work.

New Zealand has continued to be in rebuild mode following the 2011 earthquake on the South Island, and exports for dairy products remains strong. Both of these factors have enabled MRC Global New Zealand to continue to service local customers and our value proposition is attractive in this isolated part of the world.

Korean shipyards continue to be quiet. Muted upstream activity has reduced demand for upstream assets, which have been historically strong in Korea. The downstream sector has been historically parochial, however, we are keen to further help our downstream Korean customers with our global access to international brands for specific downstream applications.

In Thailand, the major fabricators have not been active, and are struggling for capacity. This is further compounded by the government decision to auction the oil and gas concessions in the gulf of Thailand. This process is expected to go into 2019, and until then, fabrication and upstream spend will remain muted. The Thai downstream sector continues to grow for MRC Global, and we have added some local MRO Contracts, which helps us to build the base business.


The Thai downstream sector continues to grow for MRC Global, and we have added some local MRO Contracts, which helps us to build the base business.


MRC Global entered China in 2018, and this business has continued to grow for us. We have two framework agreements with international EPC’s, COOEC and CPOCC, which between them have proved successful for us in our first year. We have continued discussions with our international customers and are about to add our first MRO agreement with an international chemical company.