Offshore line pipe mills that were named in the
US’ antidumping and countervailing duty investigations against oil country
tubular goods (OCTG) casing are becoming increasingly aggressive in seeking orders. Trader sources have said they are being continuously cold-called by sales people who are urging them to book tons fast because prices are about to go up, but few if any are taking the bait. And although the current range for API X-42 electric resistance weld (ERW) line pipe from Vietnamese, Philippine and Taiwanese mills is still $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt), DDP loaded truck in
US Gulf Coast ports, unchanged in the past week, anyone who wants to book significant tonnages can negotiate a better deal. Korean mills are also still offering in the range of $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt), DDP loaded truck in
US Gulf Coast ports, although prices are in no way firm. The bottom line is that despite offshore mills being hungry for orders,
US domestic demand simply isn’t at a level that would support the tonnages these producers are looking to sell.
Meanwhile, spot prices for
US domestic API X-42 ERW line pipe have trended sideways in the past week and are still in the approximate range of $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill. Lead times continue to hold at sub-four week levels, and industry insiders say that
US domestic mills, also hungry for orders, are ready and willing to negotiate deals with anyone interested in booking significant tonnages. Rumblings of a potential trade case against offshore producers are once again permeating the market, although it’s simply too soon to tell when that might drop.