Some market analysts have started to predict that oil barrel prices could once again dip below the $40 mark; Morgan Stanley this week stated that oversupply “should return by August,” once the summer-travel season comes to a close.
And while US drilling activity, and rig counts, has certainly started to show signs of recovery, those within the US domestic API X-42 ERW line pipe market feel it will still be “quite a while” before the US energy pipe sector sees any meaningful recovery.
“Line pipe is trending better than OCTG, but we’re hardly celebrating,” one Texas-based source said.
In terms of pricing, US domestic spot market prices for API X-42 ERW line pipe are once again unchanged and are still being heard in the approximate range of $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt), ex-Midwest mill. Futures prices from Korean producers are also unchanged in the past seven days and are still being heard in the approximate range of $26.50-$27.50 cwt. ($584-$606/mt or $530-$550/nt), DDP loaded truck in US Gulf coast ports.