Sideways trend seen for US domestic and import line pipe

Wednesday, 10 April 2013 23:52:42 (GMT+3)   |   San Diego
The average transaction ranges for both US domestic and import API X-42 electric resistance welded (ERW) line pipe have held steady in the past seven days, although the “buyer’s market” trend has sustained. The most commonly reported US domestic spot price range is still approximately $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-mill, with lead times remaining at about four weeks as capacity levels continue to outweigh demand. The disparity between supply and demand remains substantial enough that deals up to $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below the average range can be attained on  larger tonnages.

In terms of imports, offers prices for offshore API X-42 line pipe have seemingly leveled off.  Even CFR prices coming down by $10/mt a week ago did not improve interest in booking futures.  Traders are averse to booking orders for speculative tons as they remain reluctant to take larger inventory positions. Offer prices from Turkey, Korea, Taiwan and Vietnam to the US have remained in the range of $43.50-$44.50 cwt. ($959-981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports, but that range is far from firm.


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