US domestic energy pipe mills are seeking to raise electric resistance welded (ERW) line pipe spot prices in line with recent hot rolled coil (HRC) price increases.
In the US domestic market, API X42 line pipe spot prices have fallen about $1.00 cwt. in the last week to $64.50-$65.50 cwt. ($1,422-$1,444/mt or $1,290-$1,310/nt) ex-mill, with a few orders being placed just below, due to a slight tapering off in domestic line pipe demand over the last couple weeks--but the decline is likely to only be short-lived. US domestic HRC spot prices have increased about $3.00 cwt. in the last month, and line pipe mills have already been informing customers that a similar increase on ERW line pipe prices will be imminent. Another reason for an expected uptick in ERW line pipe spot prices is that many domestic mills that produce both line pipe and OCTG products are busy enough with orders of the latter that they aren't feeling too inclined to strike many deals on line pipe.
As for imports, line pipe offer prices for the US have already increased, and Korean API X42 ERW line pipe prices have firmed about $1.00 cwt. ($22/mt or $20/nt) since last week and now range from $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports.
Meanwhile, Indian API X42 ERW line pipe prices are up about $1.00 cwt. on the high end from last week to $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) DDP loaded truck in US Gulf ports. Traders indicate that Indian mills are trying to raise their ERW API X42 line pipe prices to about $53.00 cwt. ($1,168/mt or $1,060/nt) DDP loaded truck in US Gulf ports, but US buyers are balking at the higher prices, forcing Indian mills to negotiate their prices lower to get orders. But even with higher line pipe import prices--which are likely to increase again in the near future--import booking activity continues to remain steady, especially now that US domestic line pipe prices are projected to firm up as well.