Order activity is tapering, cancellations are starting to happen and drilling projects are being delayed, and all of these factors have market players within the US domestic API-X42 line pipe markets feeling a little concerned. And while some have said they are worried the current situation could unfold as “2009 all over again”, others say there were a lot of lessons learned during that downturn and they’ll be taking “cautious measures” until the current situation sorts itself out; inventory management is at the top of that list.
Current prices, however, remain steady since our last report a week ago. US domestic spot have continued to trend at $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill, while Taiwanese futures offers have held at $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt), DDP loaded truck US Gulf coast ports; Vietnamese offers are still trending about $0.50 cwt. ($11/mt or $10/nt) above that range, both DDP loaded truck in US Gulf Coast ports. Some SteelOrbis sources have said they believe that if oil prices start to stabilize, even if that number floats at $50-$55 per barrel, that stalled products may start to come back online, but until oil prices finally level, everyone will watch, wait and calculate their moves accordingly.