US domestic demand for line pipe is generally firm, coinciding with a strong overall rig count and demand for oil and natural gas remaining consistently robust. Even so, market uncertainties are prevalent: the US rig count is well above last year's pace, but it has declined in the last three weeks, and projects such as the Keystone XL pipeline--which has been at the mercy of political squabbles and federal regulations--has been delayed, possibly until 2013. Those uncertainties, coupled by import pressures, are allowing room for deal-making below the US domestic spot price range of $62.00-$63.00 cwt. ($1,367-$1,389/mt or $1,240-$1,260/nt) ex-Midwest mill, unchanged from last week, for API X-42 electric resistance welded (ERW) material.
As for imports, even with long lead times, Korean API X-42 ERW line pipe prices in the US are substantially below US domestic spot prices in the range of $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports. Sources tell SteelOrbis that many US buyers are using the cheaper import prices as a bargaining tool at US mills in order to negotiate lower prices. Actual futures bookings are also steady, as drops in Korean offer prices for the US in the past few weeks have made Korean line pipe even more attractive.