Although current activity within the US domestic and import line pipe markets remain strong, some are starting to question how long current buying activity will sustain.
“Some of us are starting to hear that oil prices could soon start to come down due to the supply glut,” a source said. “This honestly scares a lot of us because things just started to get better. Even though demand for line pipe is strong right now, if oil stays at current prices, I can’t see how demand won’t stabilize or slow down.”
Other sources agree. “I think if we start to see rig count grind to a halt, it may be time to start reevaluating the rest of the year,” one source said.
Korean API X-52 line pipe in the US domestic market continues to hold at $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in US Gulf coast ports, although as with last week, some SteelOrbis sources are still reporting that they are receiving bids up to $0.50 cwt. ($11/mt or $10/nt) higher.
Prices for Mexican API X-52 line pipe in the US domestic market are still being heard at $49.50-$51.50 cwt. ($1091-$1135/mt or $990-$1030/nt), FOB Houston.
Lastly, US domestic API X-52 continues to trend at $56-$58 cwt. ($1235-$1279/mt or $1120-$1160/nt), ex-mill.