The sentiment with in the
US domestic and import oil country
tubular goods (OCTG) casing market has become increasingly bearish, with some going so far as to say that buyers and sellers have concerns that the sky is truly falling. Low oil prices continue to be the primary culprit, and until those levels start to rebound, drilling projects will continue to fall off and orders will be placed on an as-needed basis. Trader sources continue to report that customers are “looking for any reason they can” to cancel orders, and while it was previously believed they’d do so and try to book at a lower price, at this point, everyone is holding off on making purchases.
Prices within the
US domestic market have held stable, with finished J55 ERW OCTG casing still at approximately $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill; while offer prices from Taiwanese mills for unfinished J55 ERW OCTG casing have ticked down by approximately $3.00 cwt. ($66/mt or $60/nt) since our last report a week ago, bringing current offers to $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in
US Gulf coast ports, while offer prices from Korean producers for unfinished J55 ERW OCTG casing, previously at $49.00-$50.00 cwt. ($49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in
US Gulf coast ports, have been revised to “whatever it takes to book an order,” according to SteelOrbis sources.