The US domestic oil rig count may have seen increases in recent weeks, but any upticks in drilling activity are unlikely to impact the US domestic line pipe market in the near-term.
As with last week, domestic spot market prices for API X-42 ERW line pipe are still trending in the approximate range of $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt), ex-Midwest mill, while trader sources continue to report that futures offer prices from Korean are still being heard in the approximate range of $26.50-$27.50 cwt. ($584-$606/mt or $530-$550/nt), DDP loaded truck in US Gulf Coast ports.
Interest in booking offshore tons, however, continues to trend weak due to market uncertainty and long lead times.
“Yes, line pipe is doing better than OCTG casing but it’s not like things are so great where we’re printing our own money,” one source said. “The market is modestly better than J55 OCTG casing but we’re by no means busy.”