October import tonnages or oil country tubular goods (OCTG) casing from Korea may have fallen by half from levels seen in September, but last month’s dip is likely to climb. Recent US Steel Monitoring Import and Analysis (SIMA) data shows that for the month of October, import tonnages of OCTG from Korea totaled 50,999 mt (license data), which was twice as high as tonnages from India, the second largest offshore source. But now that Korea has indicated they will be the importer of record, and are willing to absorb the penalties and duties related to the still-pending trade case, traders are once again booking orders. Current prices for unfinished J55 ERW OCTG casing have held steady in the past week and are still between $47.25-$43.75 cwt. ($1,042-$1,053/mt or $945-$955/nt), DDP loaded truck in US Gulf Coast ports, although deals slightly below that range can be negotiated on bigger orders. Taiwanese mills are also still offering in the range of $45.00-$46.00 cwt. ($992-$1,014 or $900-$920/nt) DDP loaded truck in US Gulf Coast ports, unchanged in the past week, but since they are not signing on as an importer of record, there is far less interest in booking Taiwanese tons.
Meanwhile, spot prices for US domestic finished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing have trended neutral in the past seven days and are still in the approximate range of $58.00-$61.00 cwt. ($1,279-$1,344/mt or $1,160-$1,220/nt) ex-Midwest mill. Industry insiders say that order activity and inquiries are consistent, but not robust, keeping last week’s neutral price forecast in play.