Deep discounts increasingly available for US import OCTG

Wednesday, 19 June 2013 01:47:56 (GMT+3)   |   San Diego
Import sales prices for unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing have become increasingly flexible. Import prices for J55 ERW OCTG casing from Korea and Taiwan in the US may still officially be in the approximate range of $43.75-$44.75 cwt. ($965-987/mt or $875-$895/nt) DDP loaded truck in US Gulf ports, unchanged in the past week, but trader sources confirm that buyers interested in placing a larger order can easily negotiate a better price. The same holds true for those interested in booking from Vietnamese and Indian mills, although import sales prices from both countries have largely held steady in the past seven days at $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports. The available deals, however, are not sparking an increase in future orders, as it is unlikely that import prices have bottomed; and as usual, the downward pricing trend has only increased rumors that a trade case against import OCTG is “just around the corner.”

Meanwhile, the market for US domestic finished J55 ERW OCTG casing has remained unchanged in the past week. Spot prices are still in approximate range of $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill. But at the same time, industry insiders have indicated that large volume orders consistently garner discounts of as much as $3.00 cwt. ($66/mt or $60/nt) below that range.


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