Import energy pipe prices have been mostly stable since dropping in mid-June, but are once again beginning to slip.
On low US import demand, API X42 electric resistance welded (ERW) line pipe prices from Korea and Taiwan fell about $3.00-$4.00 cwt. ($66-$88/mt or $60-$80/nt) in mid-June. But while line pipe demand has remained lethargic since last month's drop, prices have not shown much movement--until now. Korean and Taiwanese prices for the US have dropped $0.50 cwt. ($11/mt or $10/nt) since last week to the range of $48.50-$49.50 cwt. ($1,069-$1,091/mt or $970-$990/nt) DDP loaded truck in US Gulf ports, and if current low levels of activity persist, traders tell SteelOrbis that import prices may once again fall in August.
Korean and Taiwanese J55 ERW oil country tubular goods (OCTG) casing prices for the US have come down in the last week as well. While OCTG activity, on the whole, is stronger than activity in the line pipe sector, import bookings have been declining over the last couple months, putting import prices under pressure. After an approximately $1.50 cwt. ($33/mt or $30/nt) decline in mid-June, Korean and Taiwanese prices have dropped again, and are now in the range of $52.50-$53.50 cwt. ($1,157-$1,179/mt or $1,050-$1,070/nt) DDP loaded truck in US Gulf ports--down $1.00 cwt. ($22/mt or $20/nt) from last week.
As for US domestics, there has been no movement in spot prices over the last week, and J55 ERW OCTG casing spot prices still range from $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill. API X42 ERW line pipe spot prices are still in the $65.50-$66.50 cwt. ($1,444-$1,466/mt or $1,310-$1,330/nt) ex-Midwest mill range. Demand levels for energy pipe in the US domestically is still steady enough that mills have been able to cling tight to current spot prices. But while domestic spot prices aren't falling, they certainly are not yet increasing in line with mill price hikes of $3.75 cwt. ($75/mt or $83/nt) on line pipe and OCTG announced in early June, as continued pressure from the softening US domestic flat-rolled market is preventing the announced increases from taking hold.