Since the end of January, Korean, Taiwanese, Vietnamese and Turkish mills have announced a $40/mt increase in CFR pricing for import API X-42 electric resistance welded (ERW) line pipe to the US, but the recent softening in the price of raw materials in the Far East could lend itself to mills revising those increases. Interest in booking futures has remained light, and the market is still oversaturated in terms of supply. Although last week’s average import sales price in the US was reported in the approximate range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports out of all four regions, trader sources are beginning to speculate that CFR pricing may be revised down, consequently allowing traders to lower their prices as well. Nevertheless, if demand levels do not improve, even lower prices won’t stimulate much added interest.
In the US domestic market, API X-42 ERW line pipe prices have remained at the status-quo since our last report a week ago, and the average spot price range is still between $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt), ex-mill. Lead times have sustained at approximately four weeks, and buyers continue to report that current demand is far below the amount of product available within the marketplace. As in previous weeks, buyers can find previously imported line pipe at prices $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below US domestic spots still available.