Notable import OCTG casing prices into the US appear to be on an upward trend, while line pipe import prices have once again remained unchanged in the last week.
As predicted in our last report a week ago, import J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing prices from Korea and Taiwan to the US have started to increase. Offer prices are now in the range of about $52.75-$53.75 cwt. ($1,163-$1,185/mt or $1,055-$1,075/nt) DDP loaded truck in US Gulf ports--an increase of $0.75 cwt. ($17/mt or $15/nt) in the last week--and may increase again in the next couple weeks as buying activity has picked up and futures delivery dates have started to move into 2012. Turkish J55 ERW OCTG casing prices for the US haven't changed in the last week, and still range from $51.50-$52.50 cwt. ($1,135-$1,157/mt or $1,030-$1,050/nt) DDP loaded truck in US Gulf ports. Turkish offers have been quiet in the last week because of the end of the Ramadan holiday, but some traders suspect Turkish prices may also begin to move up soon along with Korean and Taiwanese prices throughout September.
On the other hand, import API X42 ERW line pipe offer prices from Korea and Taiwan have not changed in the last week, and are still $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) DDP loaded truck in US Gulf ports, as demand in the US line pipe market still isn't strong enough for buyers to accept higher import prices.
As for the US domestic market, sources tell SteelOrbis that OCTG mills are considering raising prices by at least $3.00 cwt. ($66-$88/mt or $60-$80/nt) as a result of similar increases by US domestic flat-rolled mills in early August. Considering steady demand and a tight domestic spot market for J55 ERW OCTG casing, if mills do issue price increases, industry insiders anticipate that at least part of the increase is likely to stick. But for now, US domestic J55 ERW OCTG casing spot prices range from $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill--reflecting no change since last week.
An increase may be on the horizon for line pipe as well, but the effectiveness of any increase gaining much traction is less likely, and for now API X42 ERW line pipe spot prices are unchanged from last week and are still $65.50-$66.50 cwt. ($1,444-$1,466/mt or $1,310-$1,330/nt) ex-Midwest mill.