There hasn’t been a whole lot going on within the US domestic and import line pipe markets, as buyers and sellers continue to report sluggish activity and lackluster pricing. Trader sources have confirmed that previously booked on-the-ground API X-42 ERW line pipe from offshore producers is being sold at below replacement cost.
The number of active drilling rigs in North America has hit a new low, according to news reports, and recent reports from Baker Hughes found the number of rotary rigs drilling for oil has come down by 31, week-on-week, to 703. Year-over-year exploration is also down by more than 44 percent and all of this has kept spot market pricing “pretty soft.”
The most commonly reported ex-Midwest mill spot price range for US domestic API X-42 ERW line pipe continues to trend at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill; futures offers from Vietnamese and Taiwanese prices still holding at approximately $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) DDP loaded truck in US Gulf coast ports, although both traders and US domestic buyers say everything is “very flexible” based on the right sized order.