The Department of Commerce’s International Trade Administration’s announcement that preliminary dumping determinations against oil country
tubular goods (OCTG) from various overseas sources will be delayed until February due to the government shutdown and the investigation being deemed “extraordinarily complicated” seems to have bolstered Korean OCTG mills, who are continuing to offer unfinished J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing to the
US in a “business as usual” fashion. SteelOrbis sources continue to report they are receiving offers from multiple Korean mills and expect this trend will continue unless preliminary dumping margins exceed 10 percent, which they have agreed to absorb as the importer of record. If margins are higher,
Korea might not be completely removed from the market--at that point it’s believed they will simply “unscrew the mills” and put them back together on
US soil. In terms of current prices for unfinished J55 ERW OCTG casing, these seem to have firmed by approximately $2.25 cwt. ($50/mt or $45/nt) in the past week, with the new approximate range now at $47.25-$43.75 cwt. ($1,042-$1,053/mt or $945-$955/nt), DDP loaded truck in
US Gulf Coast ports, although deals slightly below that range can be negotiated on larger orders. Taiwanese mills, however, are also said to be offering in the range of $45.00-$46.00 cwt. ($992-$1,014 or $900-$920/nt) DDP loaded truck in
US Gulf Coast ports. Trader sources, though, have indicated interest in bookings from this county remains weak.
Meanwhile, spot prices for
US domestic finished J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing have held steady in the past week and continue to be in the approximate range of $58.00-$61.00 cwt. ($1,279-$1,344/mt or $1,160-$1,220/nt) ex-Midwest mill. Demand has held at steady but continues to lack robustness needed to support price firming, placing the forecast for November at neutral.