Both US domestic and import API X-42 electric resistance welded (ERW) line pipe prices remain soft with more room to fall. June has been a gloomy month in terms of market outlook in the US line pipe market as falling oil prices and global market uncertainty continues to push US buyers into a wait-and-see mode and delay, if not entirely abstain, from purchases. Price negotiations domestically are still tipped in US buyers' favor, resulting in a few mills competing aggressively for orders. After falling a week ago, domestic spot prices are still largely in the $59.00-$61.00 cwt. ($1,301-$1,345/mt or $1,180-$1,220/nt) ex-Midwest mill range, although with the summer slowdown hitting the US market especially hard, those prices could come down again throughout July.
On the import side, it is unlikely that the price erosion has ceased either, especially now that delivery dates from offshore are within the last two months of the year, and therefore an inventory risk for many. US service center buyers tell SteelOrbis that even though demand is only sporadic right now, it hasn't slowed enough that they can stop placing import orders entirely, especially as prices remain competitive. Current Korean import offer prices are unchanged since last week at $47.00-$48.00 cwt. ($1,037-1,059/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, with Taiwanese prices within a similar range.