Transaction prices for unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing to the US from Korea, Taiwan and Vietnam have finally begun to tick upward. Import CFR offer prices from Korea and Taiwan had increased by $60/mt during the last two weeks in February, while CFR prices from Taiwan increased by $70/mt. The increases did not come as a surprise as raw materials prices in the Far East had gone up substantially. However, the higher OCTG casing CFR offer prices did not immediately translate into higher sales prices in the US as import demand was too lethargic. However, since last week, sales prices have increased $1.50 cwt. ($33/mt or $30/nt) and are now in the approximate range of $46.50-$47.50 (1,025-1,047/mt or $930-$950/nt) DDP loaded truck in US Gulf ports. Nevertheless, trader sources said that import activity remains light and buyers interested in placing larger orders would likely be able to negotiate deals at pre-increase levels.
Meanwhile, the average spot price transaction range for US domestic finished J55 ERW OCTG casing is unchanged in the past week and continues to be seen in the approximate range of $61.00-$62.00 cwt. ($1,345-$1,366/mt or $1,220-$1,240/nt) ex-Midwest mill. Buyers continue to report deals are available from a handful of larger service centers, noting that although business is steady, it is still too light for the lower-priced deals to dissipate.