New futures offers for unfinished J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing are still trending quiet. Trader sources have confirmed that bookings out of
Korea and
Taiwan that had taken place through the second to last week of July have fallen off since the “window of opportunity” is closing. With the
US DOC’s decision to officially initiate a probe into all countries named in the suit, the January deadline to import any OCTG into the
US, without imminent fear of being slapped with duties, is fast approaching.
Meanwhile,
US domestic prices and volumes have not yet been affected by the OCTG trade case .
US domestic spot prices for finished J55 ERW OCTG casing are still in the approximate transaction range of $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill. This is not to say that deals below that range can’t be negotiated on larger orders. At the same time, buyers aren’t chomping at the bit to make stock buys. However, Northwest Pipe executives said during their Q2 earnings call Tuesday that domestic prices could have room to rise following the
US ITC’s preliminary determination in mid-August, but that would be “more of a Q4 event.” They are placing orders for what they need, when they need it. Demand, according to industry insiders, continues to be steady, but lacks luster.