A blend of conflicting positive and negative market factors is strongly impacting overall activity in the US domestic API X-42 electric resistance welded (ERW) line pipe market. The last few weeks have shown more declines in the US' rig count than gains, and with raw materials prices suffering significant losses in the last couple months (scrap prices are expected to take another dive again next month), many line pipe buyers and sellers are gloomy on the line pipe market's outlook. While selling volumes haven't dropped off significantly as of late, margins have been constrained due to more cautious buying patterns and competition from the import market. US domestic spot prices have slipped to about $59.00-$61.00 cwt. ($1,301-$1,345/mt or $1,180-$1,220/nt) ex-Midwest mill, a $1.00 cwt. ($22/mt or $20/nt) on the low end, since last week.
Import API X-42 ERW line pipe offer prices, meanwhile, are stable since last week at approximately $47.00 cwt. ($1,037/mt or $940/nt) DDP loaded truck in US Gulf ports from Korean and Taiwanese mills, although some sources tell SteelOrbis that some traders have offered line pipe at about $1.00 cwt. lower. The price trend on imported line pipe is also pessimistic at the moment, and import prices may very well drop again in the next couple weeks.