Although traders and others closely watching the AD/CVD trade case against OCTG imports have been speculating that the final determinations could very well result in much higher margins than the preliminary figures, not even the prospect of potentially increased import offers has spurred
US buyers to book extra orders ahead of time. And like demand, import offer prices are stagnant. Low-end spot price offers from Korean and Taiwanese mills are still in the approximate range of $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), DDP loaded truck
US Gulf coast ports, with first-tier mills offering in ranges approximately $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt) higher than their second and third tier counterparts.
As for the
US domestic market, spot prices for finished J55 ERW oil country
tubular goods (OCTG) casing have continued along their nearly year-long neutral trend, with the most commonly reported transaction range still at approximately $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt), ex-Midwest mill. For now, all eyes continue to be focused on the oil rig count. The most recent data from Baker Hughes indicate the number of rigs drilling for oil increased by 24 last week, bringing the total up to 1,534. This reflects an 11.1 percent year-over-year gain from the same period in 2013. Although this could be a good sign for OCTG producers, this uptick would need to be consistent and ongoing for it to have any longstanding impact on the market.