While the US standard pipe market hasn't experienced the same boon in activity as pipe markets in the energy sector throughout the past several months, standard pipe demand has remained neutral to slightly up.
However, many US distributors of standard pipe are now experiencing growing inventory gaps due to previously conservative purchases and partial order placement- which has been compounded by late arrivals of many standard pipe orders from offshore sources.
Offshore mills are expected to begin taking advantage of these inventory gaps by increasing prices within the next couple weeks, regardless of what happens with scrap pricing; although if scrap does increase next month, which continues to be a possibility, that would only add to foreign mills' push for higher prices.
For the time being, most offshore mills have kept their prices neutral from our last report two weeks ago on import offers to the US. Most imported electric resistance welded (ERW) black plain end (BPE) A53 Grade A standard pipe offers from Turkey and India continue to be found in the approximate range of $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt) duty-paid, FOB loaded truck in US Gulf ports; however, Turkish mills may already have begun to firm up this range and are at least not expected to be agreeing to many deals under the above mentioned range. Korean offers continue to be about $1.00 cwt. ($22/mt or $20/nt) higher than most of its competition, at around $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) duty-paid, FOB loaded truck in US Gulf ports. And on the lower end of the price spectrum, traders have informed SteelOrbis that BPE deals out of Malaysia are currently being seen from approximately $46.00 cwt. to $47.00 cwt. ($1,014/mt to $1,036/mt or $920/nt to $940/nt) duty-paid, FOB loaded truck in US Gulf ports, with the possibility of booking even below this range depending on tonnage and size specifics.
On the coated side, despite the cost of zinc dropping in recent weeks, most Indian standard galvanized plain end (GPE) offers continue to be found ranging from about $56.00 cwt. all the way up to $60.00 cwt. ($1,235/mt to $1,323/mt or $1,120/nt to $1,200/nt) duty-paid, FOB loaded truck in US Gulf ports. Some traders may be able to negotiate deals for in the mid- $50s cwt. but Indian mills are keeping their prices firm for the most part. In fact, some traders have informed SteelOrbis that Indian GPE mills will not even provide them with a price offer until the trader/buyer sends the order specs and quantity.
According to license data from the Steel Import Monitoring and Analysis System (SIMA), the US imported 61,191 mt of standard pipe during April, nearly a 20 percent increase from March, at 50,571 mt., and nearly a 50 percent year-over-year increase from the 42,773 mt recorded in April 2009. The four countries which imported the most standard pipe tonnage during April were Canada, at 16,052 mt; Korea, at 8,763 mt; India, at 5,356 mt; and Turkey, at 5,168 mt.