Last week, SteelOrbis spoke with several sources who expressed concern that oil prices may have peaked; if oil prices started to tick downward, and drilling projects began to stall, many questioned how this would impact the US domestic and import API X-52 ERW line pipe markets. This week, sources continue to express the same concerns.
Yesterday, oil prices plunged by 4 percent to less than $46-per-barrel; current prices are down 14.5 percent from their peak in mid-April.
For now, though, demand and spot market prices have remained stable. US domestic API X-52 continues to trend at $56-$58 cwt. ($1235-$1279/mt or $1120-$1160/nt), ex-mill, while prices for Mexican API X-52 line pipe in the US domestic market are still being heard at $49.50-$51.50 cwt. ($1091-$1135/mt or $990-$1030/nt), FOB Houston. Lastly, prices for Korean API X-52 line pipe in the US domestic market are also steady, at $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in US Gulf coast ports.