Although the most commonly reported spot prices for US domestic API X-42 line pipe have held steady in the past week, at $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill, deals below that range continue to permeate the market. Lead times continue to trend between three and four weeks, according to SteelOrbis sources, and buyers are holding off on stocking inventories and are only buying what they need when they need it. At the same time, all eyes continue to be on the US rotary rig count. According to the most recent report by Baker Hughes, for the week ending March 28, the number of rigs drilling for oil increased from 1,473 to 1,487, and it reflects a 61-rig increase year-on-year. The number of rigs drilling for natural gas, however, declined from 326 to 318, which further reflects a 71 year-on-year rig decline from this time last year.
Meanwhile, offshore prices for import API X-42 from Vietnam and Taiwan are also unchanged in the past seven days and continue to hold at approximately $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck US Gulf coast ports. Trader sources have said that previously heard deals are becoming fewer and farther between, and that offshore line pipe producers are less willing to negotiate on price than they were in March.