In the last couple weeks, import API X-42 electric resistance welded (ERW) line pipe offer prices to the US have increased $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt). Korean and Taiwanese sales prices in the US are now between $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, compared to $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports two weeks ago. Booking activity, meanwhile, has not picked up as many US buyers are still awaiting previously purchased imports from offshore. US Steel Import Monitoring and Analysis (SIMA) data show 138,685 mt (license data) of line pipe arriving this month as of May 15, following 222,796 mt (license data) in April and 252,343 mt (census data) in March.
In the US domestic market, line pipe spot prices are largely stable in the range of $61.00-$62.00 cwt. ($1,345-$1,367/mt or $1,220-$1,240/nt) ex-mill. For the most part, the US' strong oil rig count is keeping domestic spot prices stable, and even trending toward the top of the range. However, with so much less expensive import material available and a softening US domestic flat rolled market, sources tell SteelOrbis there may not be enough strength in the line pipe market for any price increase and spot prices are likely to stay at current levels for the immediate future.
