According to the most recent data from Baker Hughes, the number of
US rotary rigs drilling for oil fell by an additional 12 rigs last week, which brings the current number of
US rigs drilling for oil to 498. Rigs directed toward drilling for natural are also down an additional six rigs since our last report a week ago. Current year-on-year oil exploration efforts continue to be down 59.3 percent; year-on-year gas exploration is down by 62.1 percent. The weekly average of crude oil spot prices is 30.4 percent lower than last year and natural gas spot prices are 23.8 percent lower than last year.
TMK IPSCO is the latest company to announce that it would be downsizing its workforce. The Houston-based company has said it would lay off approximately 126 workers at its Wilder, Kentucky OCTG mill in March. The company also cut 320 jobs last July. Company representatives and union officials cite layoffs within the oil and gas industry along with low-priced energy pipe imports as being the cause.
As previously reported, Tenaris and
US Steel have also announced they would be laying off workers due to weak demand, which has been spurred by a global downtrend in oil prices.
All of this continues to impact pricing and order activity within the
US domestic and import J55 ERW OCTG casing markets. As with last week, the average
US domestic spot market price range has held steady at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while offshore futures prices from Korean and Taiwanese producers are also lateral week-on-week, at $27.50-$29.50 cwt. ($606-$650/mt or $550-$590/nt), DDP loaded truck in
US Gulf Coast ports. As in previous weeks, all pricing is negotiable. Sources close to SteelOrbis have confirmed that sellers are more than willing to offer deals in order to book tons.