Import oil country tubular goods (OCTG) casing offer prices to the US have firmed in line with increases in the US domestic market, while line pipe prices are holding steady for the time being.
In the last week, US domestic J55 electric resistance welded (ERW) OCTG casing spot prices have firmed about $0.50 cwt. ($11/mt or $10/nt) to the range of $66.50-$67.50 cwt. ($1,466-$1,488/mt or $1,330-$1,350/nt) ex- mill. While the increase (and likely further increases in the near term) are primarily due to an increase in domestic hot rolled coil (HRC) spot prices which have risen about $2.00-$3.00 cwt ($44-$66/mt or $40-$60/nt) in the last month, firm demand levels from drilling projects, and consistently lean buyer inventories are allowing pipe mills' push for higher prices to be absorbed in the market.
As a result of higher US domestic OCTG casing spot prices, offshore sources have also started to raise their offer prices to the US. Korean J55 ERW OCTG casing prices are now about $55.00-$56.00 cwt. ($1,213-$1,235/mt or $1,100-$1,120/nt) DDP loaded truck in US Gulf ports--reflecting an increase of $1.00 cwt. ($22/mt or $20/nt) from last week. Offer prices from Taiwan to the US are within a similar range. Vietnamese prices for the US have increased as well, and can now be found in the range of $54.00-$55.00 cwt. ($1,190-$1,213/mt or $1,080-$1,100/nt) DDP loaded truck in US Gulf ports--up $0.50 cwt. since last week.
Import line pipe prices to the US for API X42 ERW material, on the other hand, have stayed stable over the past week in the range of 49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports. Traders tell SteelOrbis that Korean mills are anxious to raise their offer prices to the US on the back of higher HRC costs in their domestic market, but may hold off until the US domestic spot market for line pipe exudes signs of an uptick in prices akin to the market for welded OCTG casing.
US domestic API X42 ERW line pipe spot prices are still $64.50-$65.50 cwt. ($1,422-$1,444/mt or $1,290-$1,310/nt) ex-mill, representing no change from last week, although industry insiders informed SteelOrbis that domestic mills have been trying to impose a portion of the increase on HRC spot prices in recent weeks on prices for ERW line pipe, and considering largely consistent domestic line pipe order activity, such a move has a good chance of being successful, at least in part.