US domestic line pipe margins continue to be squeezed

Wednesday, 07 May 2014 11:05:26 (GMT+3)   |   San Diego
       

US domestic line pipe mills continue to feel a financial pinch as they struggle to balance two key factors. On one side of the coin, mills are being squeezed by increased raw materials costs. On the other, short lead times and overproduction are doing nothing in terms of helping them get prices up. The current most commonly reported ex-Midwest mill spot price transaction range has held at approximately $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) since our last report a week ago, although deals as $2.00 cwt. ($44/mt or $40/nt) below that range can be negotiated by buyers who are wanting to book larger tonnages. 

In terms of offshore offerings, prices out of Vietnam and Taiwan continue to be aggressively priced, at $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck US Gulf coast. And once you combine aggressively priced imports alongside steady, yet sluggish order activity, the market is thus forecast to continue its sideways trend.


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