Import activity in the US has been quiet for over a month now with little change in prices since Korean mills unsuccessfully attempted to increase J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing offer prices to the US in early February. There are also so many similar import offers available to US buyers, that trader sources tell SteelOrbis that customers feel no rush to place an order, especially while holding high stocks. Korean offers are still between $49.50-$51.50 cwt. ($1,091-$1,135/mt or $990-$1,030/nt) DDP loaded truck in US Gulf ports with Taiwanese offer prices about $0.50 cwt. ($11/mt or $10/nt) less; but if import activity remains as quiet as it has been, mills may become hungrier for orders and lower prices to lure US buyers back in the market. Meanwhile, offer prices from Turkey, Vietnam, Malaysia, and the Philippines are also unchanged in the range of $48.75-$49.50 cwt. ($1,075-$1,091/mt or $975-$990/nt) DDP loaded truck in US Gulf ports.
Widespread availability, from both domestic mills and offshore, is also putting downward pressure on US J55 ERW OCTG spot prices. While overall drilling activity is mostly strong, with many new drilling wells requiring higher grades of OCTG that are more scarce, commodity grade OCTG casing is feeling the full brunt of both import and domestic competition. For now, spot prices are mostly steady from last week in the range of $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill, with mounting potential to slip sooner rather than later.