Spot prices for US domestic and import API X-42 line pipe may have held steady since our last report a week ago, but sources close to SteelOrbis say that mills are ready and willing to negotiate with anyone who is looking to place an order. “Mills are getting scared because their order books are drying up,” according to one Midwest-based source, “and everyone is starting to panic.”
Inventories are still good, according to service center and distribution center sources, many of whom say they “likely won’t need to buy anything for three to four months.” With that being the case, and mills’ order books trending light, prices are likely to stay flexible until buyers need to reenter the market.
In terms of prices, the US domestic spot market continues to hold at approximately $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill, while Taiwanese futures offers are steady at $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt); Vietnamese offer prices continue to trend roughly $0.50 cwt. ($11/mt or $10/nt) above that range, both DDP loaded truck in US Gulf Coast ports, but, as mentioned, anyone who is looking to book tons is likely to be able to negotiate deals.