US domestic oil country tubular goods (OCTG) mills have been attempting to push through price increases announced earlier this month. And although drilling activity remains strong overall, major drops the last two weeks in US rig counts (falling by 15 last week and 10 the week before) are keeping buyers from growing too bullish on the OCTG market. Domestic spot prices for J55 electric resistance welded (ERW) OCTG casing are still $65.00-$66.00 cwt. ($1,433-$1,455/mt or $1,300-$1,320/nt) ex-mill, as they were a week ago, and while mills have been less willing to take orders significantly below the range in the last week as they aim to firm up prices, high product availability remains a major obstacle to any price increases.
Additionally, falling import prices in the US are also hindering domestic mills' ability to firm up spot prices. Weak global steel demand and a lack of orders has resulted in yet another decline in import offer prices to the US from Korea. Korean J55 ERW OCTG casing offer prices to the US are now in the range of $50.50-$51.50 cwt. ($1,113-$1,135/mt or $1,010-$1,030/nt) DDP loaded truck in US Gulf ports, down $0.50 cwt. ($11/mt or $10/nt) in the last week. Offer prices from Taiwan are within a similar range although traders tell SteelOrbis that a few mills in Taiwan have offered OCTG casing to the US as low as $50.00 cwt. ($1,102/mt or $1,000/nt) DDP loaded truck in US Gulf ports as they compete amongst themselves to attract orders from US buyers.