Import CFR offer prices for unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing to the US from Korea and Vietnam have come down by $20/mt in the past week, whereas import offers from Taiwan to the US have declined by about $30/mt. This came as no surprise, especially since traders had been reluctant to book futures at higher prices after Asian mills announced $60-$70/mt in increases toward the end of January. Last week, traders negotiated Indian offers of OCTG casing into the range of $46.00-$46.50 ($1,014-$1,025/mt or $920-$930/nt) DDP loaded truck in US Gulf ports; and in the last week, Korean, Taiwanese and Vietnamese mills have lowered their offer prices to be on par with India. The average sales price in the US is for the most part consistent with CFR offer prices, although trader sources report that deals as much as $1.50 cwt. ($33/mt or $30/nt) are available.
Meanwhile, the average spot transaction range for US domestic finished J55 ERW OCTG casing has trended neutral in the past week and is still being seen in the approximate range of $61.00-$62.00 cwt. ($1,345-$1,366/mt or $1,220-$1,240/nt) ex-Midwest mill. However, deals as much as $3.00 cwt. ($66/mt or $60/nt) below the range are available for those interested in booking larger orders. As of last Friday, Bakers Hughes reported the number of rigs drilling for oil dropped by 17 week-on-week to 1,324. This is less than a 1 percent increase from the same period last year. Continued drops in the US domestic rig count remain a major factor in buyers managing pipe inventory levels cautiously.