Following the recovery in shipments to both domestic and international markets towards the end of 2010, WSP Holdings began to see further improvement in its product selling prices in the beginning of 2011. The Company believes that it will show a further improvement in performance riding on the recovery of both sales volume and selling prices in 2011.
The Company expects that the trend of recovery in shipments seen in the second quarter of 2010 will continue into the second half of 2010, especially in the domestic market and through expansion into new international markets. The Company expects more than half of its revenues to be generated from the domestic market.
Despite the tough market environment that we have been facing recently, we see signs of improvement with the domestic prices of our products picking up while on the international front, we have been successful in our penetration efforts, tapping into new markets and securing new customers especially in Russia, Uzbekistan and South America. With the recovering momentum of global oil and gas drilling activity, we expect to see a recovery in our business sales volume and prices in the second half of 2010 from the current low level driven mostly by the domestic demand.