Additional price softening seen within US domestic standard pipe market

Wednesday, 19 October 2016 03:13:35 (GMT+3)   |   San Diego
       

Still-soft US domestic hot rolled coil (HRC) prices, combined with the downtrend in US domestic scrap prices during the October buy-cycle have helped place downward pricing pressure on the US domestic Grade A ERW BPE standard pipe spot market.

The most commonly reported spot price transaction range for US domestic Grade A ERW BPE standard pipe has softened by approximately $1.00 cwt. ($22/mt or $20/nt) since our last report two weeks ago, which brings the current average spot market price transaction range to $40-$42 ($882-$926/mt or $800-$840/nt), ex-Midwest mill.  Other sources close to SteelOrbis report that volume-sized buyers "have no problem doing better than $40 cwt." ($882/mt or $800/nt) due to the downtrend in [hot rolled] coil prices."

Year-on-year pricing is down as well.

In mid-to-late Oct. 2015, SteelOrbis reported the most commonly heard spot market price transaction range for US domestic Grade A ERW BPE standard pipe were trending in the range of $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill.

Order activity remains steady, yet tepid, which is typical of the last quarter of the year.  SteelOrbis sources continue to report that buyers are “tightly managing inventories” and that orders are coming in on an “as-needed basis,” as many buyers are concerned that spot market prices could see additional corrections if US HRC prices maintain their downtrend.

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