The most commonly reported spot market price transaction range for
US domestic Grade A ERW BPE standard pipe has firmed by approximately $1.00 cwt. ($44/mt or $40/nt) on the top end since our last report a week ago, which brings the current average ex-Midwest mill spot market transaction price to $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt).
As in previous weeks, sources close to SteelOrbis continue to attribute the uptick in spot market prices to increased input costs.
“Hot rolled coil prices keep going up so it makes sense that standard pipe prices are still firming,” one source said. “Mills’ input costs are up so no one is surprised that spot prices are up, too.”
Many
US-based sources believe that flats mills will soon announce another price increase, as two West coast-based mills have already indicated they’ll be raising prices by $7.50 cwt. ($165/mt or $150/nt) effective immediately.
“If the Midwest mills announce another flats increase, and that increase is absorbed, we expect standard pipe prices will continue to firm.”