Global oil prices may have been on an uptrend for the past year, but some are concerned that the downward pricing pressure this month, which many attributed to overproduction of
US shale oil, may face additional pressure in the future.
Recent news reports note that the April Chinese Manufacturing Caixin PMI “fell to its slowest pace in seven months.”
A weak Chinese PMI, even amidst the expectation that OPEC will likely extend production cuts through 2018, could be problematic for global oil barrel price and thus, damper
US drilling projects and affect buyers and sellers of
US import OCTG casing.
For now, however, OCTG prices are mostly stable. Korean mills are still offering quietly, sources say; prices for unfinished,
US import J55 ERW OCTG casing from Korea in the
US domestic market are being heard between $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in
US Gulf coast ports; prices for unfinished
US import J55 ERW OCTG casing from Taiwan in the
US domestic market are being heard at $0.50 cwt. ($11/mt or $10/nt) below this range.
Korean steelmaker Nexsteel has indicated to
US customers that based on the
US DOC’s newly revised dumping margin, which has been assessed at 24.92 percent, they “cannot ship J55 casing or
tubing to the
US for less than $50.00 cwt. ($1102/mt or $1000/nt),” a source said.