The US domestic market for API X-42 electric resistance welded (ERW) line pipe has remained neutral since our last report a week ago, with the average ex-mill spot price range remaining between $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt). Short, four-week lead times, modest demand and oversaturation of product is still the Achilles Heel for the domestic line pipe market, according to industry insiders, who point out that deals between $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below mill prices on previously imported position tons are still available. For now, sellers say it is still “gloves off” when it comes to quoting bids to buyers interested in larger orders.
Looking offshore, recent increases in CFR pricing for import API X-42 electric resistance welded (ERW) line pipe to the US from Korean, Taiwanese, Vietnamese and Turkish mills are beginning to show signs of acceptance. CFR pricing from all four countries has increased by approximately $40/mt since the middle of February, and trader sources say sales prices in the US are starting to firm. The average import sales price in the US on API X-42 line pipe out of each of these countries is now being seen in approximate range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports, reflecting an increase of $1.00 cwt. ($22/mt or $20/nt) in the past week. Interest in booking futures, though, is scant.