With a substantial disparity between US domestic API X-42 electric resistance welded (ERW) line pipe spot prices and import offer prices from offshore, traders have reported decent activity levels. In February, a few industry insiders told SteelOrbis their line pipe import activity actually exceeded inquiries and interest in some commodity-grade OCTG products. However, in the last couple weeks, that small burst in line pipe activity has subsided, and US buyers have slowed their purchases after booking so heavily over the past few months. Import offer prices, meanwhile, have remained unchanged and Korean prices are still between $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports. Indian prices are also steady and are $0.50 cwt. ($11/mt or $10/nt) higher than Korean. Vietnamese and Turkish prices, on the other hand, are the lowest currently available and range from $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports.
In the US, purchasing activity is still largely quiet due to well-stocked buyers and some concerns over future activity levels. Consecutive week-on-week increases in the US oil rig count have been tempered by drops recently, so some industry players have indicated that they don't expect any spectacular boost in demand in the immediate future. However, because no major drops are expected either, mills have been able to hold spot prices steady in the range of $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex-mill, reflecting no change in the last week.