Last week, futures offer prices for API X-42 electric resistance weld (ERW) line pipe shot upward, as many believed offshore mills were preparing for a potential trade case, but prices from some sources have seemed to level off this week while others continue to rise. Offers from
India have held steady, at approximately $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt) DDP loaded truck
US Gulf coast ports, while offers from Brazilian mills continue to trend approximately $1.00 cwt. ($22/mt or $20/nt) higher. Prices from Taiwanese producers, however, have ticked up by about $1.50 cwt. ($33/mt or $30/nt), to $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), while prices from Korean mills have ticked up by $2.00 cwt. ($44/mt or $40/nt) to $42.00-$42.50 cwt. ($926-$937/mt or $840-$850/nt), both DDP loaded truck in
US Gulf coast ports. Trader sources say that Taiwanese and Korean mills don’t seem too concerned about whether
US buyers will readily accept their increase because “they’re mostly focused on the OCTG market.”
In terms of the
US domestic market, spot prices have held lateral and continue to trend in the approximate range of $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill. Although many suspected that since the OCTG trade case was successful that a line pipe filing would be imminent, others point out that the OCTG trade case rumors swirled for a few years before the Department of Commerce moved forward.