Is a price increase imminent for US standard pipe?

Thursday, 21 November 2013 23:32:45 (GMT+3)   |   San Diego
       

Although there is still the expectation that producers of US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe will try to push for higher prices, an increase announcement has not yet materialized.  This has less to do with supply and demand and is more linked to continued firming seen for US domestic hot rolled coil (HRC), which increased by an additional $1.00 cwt. ($22/mt or $20/nt) last week.  SteelOrbis sources feel that if this trend continues it’s only a matter of time before standard pipe producers will push for higher prices.  For now, the spot price range has held steady in the past two weeks and are still in the approximate range of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill.
 
Meanwhile, US standard pipe imports continue to trickle in, but at lackluster tonnage levels.  According to the most recent US Steel Mill Monitoring Import and Analysis (SIMA) data, the worldwide import standard pipe tonnages in October fell by nearly 27,000 mt (license data) from levels reported in September (census data), with the US’ two largest offshore sources being Turkey and the Germany, at 5,416, mt and 3,681, mt (license data) respectively.  Korean and Vietnamese mills are still pushing for orders for A-53 ERW BPE standard pipe and offers continue to hold the approximate range of $39.50-$40.50 cwt. ($871-$893/mt or $790-$810/nt) DDP loaded truck in US Gulf Coast ports, unchanged in the past two weeks, although interest remains weak.


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