Spot prices for US domestic API X-42 electric resistance welded (ERW) line pipe continue to trend in the range of $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill, as short lead times and oversupply are continuing to hinder the market. Demand is stable, according to industry insiders, but there is simply too much availability in a market that is not especially robust. According to the most recent data from Baker Hughes, US oil rig counts are declining. As of October 18, the current number of rigs drilling for oil is 1,361, reflecting a decrease of six in the past week and a year-on-year dip of 49. Although falling rig counts are not expected to have an immediate effect on the market, prices will likely not firm organically until a firm reversal of this trend comes to pass.
Meanwhile, the import market is still trending soft. Prices for US import API X-42 ERW line pipe from Vietnam, the Philippines and Taiwan are unchanged in the past week and are still in the approximate range of $39.50-$40.50 cwt. ($871-$893/mt or $790-$810/nt) DDP loaded truck in US Gulf Coast ports, whereas Korean prices have held at $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US Gulf Coast ports, also unchanged in the past week. Trader sources continue to say that Korean mills are happy to price-match their competitors in order to book tonnages, but as with last week, there is simply not a lot of interest in booking futures.