Cheap oil prices still a problem for US line pipe market

Wednesday, 09 September 2015 23:23:39 (GMT+3)   |   San Diego
       

The official US domestic ex-Midwest mill spot prices may be unchanged in the past week, still at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), but sources close to SteelOrbis report that sluggish order activity would likely prompt deals as much as $4.00 cwt. ($88/mt or $80/nt) below that range.  Order activity, however, remains scant.  “No one is buying anything right now,” said one Texas-based source.  “There just isn’t anything going on.” 

Futures prices from Korean producers are also flexible, with current offer prices continuing to trend in the approximate range of $30.50-$32.50 cwt. ($672-$717/mt or $610-$650/nt), DDP loaded truck in US Gulf coast ports.  As with last week, SteelOrbis sources report that on the ground Korean API X-2 line pipe, however, is said to be available “for much less than current futures offers.”  Cheap oil prices and volatility within that market segment are still the biggest problem for the US domestic and import line pipe markets, and prices are expected to trend weak until oil market prices begin to stabilize. 


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