Price flexibility now the norm in US line pipe market

Wednesday, 28 August 2013 23:50:33 (GMT+3)   |   San Diego
       

Prices for US domestic API X-42 electric resistance welded (ERW) line pipe have held steady, but remain flexible. Lead times have held at about four weeks, and an overall weakness in the market continues to lend itself to rampant deal making as capacity still outpaces what is only decent demand. The most commonly reported transaction range may still be $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill--reflecting no change in the past week, but buyers who are looking to book larger tonnages can still achieve deep discounts.

Meanwhile, the, futures offer prices for API X-42 line pipe from Taiwan, Vietnam and Korea continue to be seen in the approximate range of $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt) DDP loaded truck in US Gulf ports.  Texas-based trader sources said they are reluctant to book futures beyond what is immediately needed due to year-end arrival dates to avoid being slapped with a year-end inventory tax. This is not to say that traders and US buyers will substantially increase their import buying activity once delivery dates move into 2014 considering that the availability of line pipe in the US (domestically and coming from offshore) still outpaces current demand. 

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