Numerous sources close to SteelOrbis continue to report that soft rig counts compounded with global oil overproduction is still having a negative import on the US domestic energy pipe market. Service centers continue to sell energy pipe, including API X-42 ERW line pipe, below replacement cost, just as a means of gaining cash flow.
“It’s rough out there and we don’t expect this to change anytime soon,” one source said, adding that recovery could be “at least a year out.”
In terms of current pricing, US domestic spot market prices for API X-42 ERW line pipe are still being heard in the approximate range of $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt), ex-Midwest mill, although ex-distribution center pricing is “extremely flexible and in some cases, mimicking fire-sale prices.”
In terms of futures, trader sources say they continue to hear offer prices from Korean producers in the approximate range of $26.50-$27.50 cwt. ($584-$606/mt or $530-$550/nt), DDP loaded truck in US Gulf coast ports.