The
US domestic and import line pipe markets may have held steady since our last report a week ago, but players within the market see the start of 2015 as being a “weird time” to be in the energy pipe business. Although some sellers reported having a slower-than-usual December, others say the final month of 2014 was “more robust than we ever could have expected.” Falling oil prices are expected to take their toll on the energy pipe sector, as it’s no great secret that low prices will have a negative impact on drilling.
But for now, things remain stable.
US domestic spot prices are lateral in the past week, still at about $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill, although these prices are expected to soften as the year moves forward. “Line pipe pricing usually has a three six month lag behind OCTG prices and we expect OCTG prices to come down,” according to one Midwest-based source, furthering there is a lot of wariness in terms of market sentiment. Import prices from
Taiwan, previously at $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt), DDP loaded truck
US Gulf coast ports are also neutral in the past week, while Vietnamese offers are still trending about $0.50 cwt. ($11/mt or $10/nt) above the Taiwanese range, both DDP loaded truck in
US Gulf Coast ports.