What does the US DOC ruling means for US OCTG imports from Korea?
It’s been two weeks since the US Department of Commerce announced new dumping margins against Korean OCTG imports. And while some felt that the 24.92 percent dumping margin that was assessed against Nexsteel would make their offer prices non-competitive in the US market, others say that based on current pricing strength within the US, ordering from Nexsteel could still be viable.
Current US pricing for finished J55 ERW OCTG casing is still trending at $50-$52 cwt. ($1102-$1146/mt or $1000-$1040/nt), ex-mill, sources say. Another source said he’s been quoted “slightly higher.”
Last heard pricing for unfinished J55 ERW OCTG casing in the US domestic market from Korea was at $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in US Gulf coast ports.
“[Domestic] pipe and service prices have rocketed back up on the heels of rising rig counts. At this point the domestic mills simply don’t have the capacity to meet all the demand,” a source said. “Even with the 25 percent margin against Nexsteel, based on current US pricing, they will still be at or slightly under domestic prices. The margins may not completely shut them out of the market.”
The wildcard, another source added, relates to oil prices. “If oil prices start to cool off and drilling starts to taper, US prices could come down. If that happens, booking from Nexsteel won’t make sense.”
*This was published on SteelOrbis website on April 26, 2017