Sentiment within the US domestic and import API X-42 line pipe markets continue to trend weak, with many buyers saying that many sellers are courting them with “what does my price need to be to get an order” sales pitches.
Still-volatile oil prices, which some experts believe could hit $25 per barrel based on record-high US crude oil supply levels and drilling levels that continue to produce more than 502 million barrels per day domestically, compounded with the ongoing global supply glut, continue to be the market’s biggest Achilles heel.
In terms of current spot market prices, as in previous weeks, sources close to SteelOrbis continue to report that “prices are whatever it takes to book an order.”
Although the most recently quoted futures prices from Korean and Taiwanese producers are in an official range of $25.50-$26.50 cwt. ($562-$586/mt or $510-$530/nt), DDP loaded truck in US Gulf Coast ports, these numbers are “highly flexible,” as some traders believe they could obtain deals as much as $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) below that range if they pushed for a better price.
And as with last week, domestic spot market pricing, which continues to hold in the approximate range of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), ex-Midwest mill, is “also by no means firm.”