The AD/CVD case against nine offshore importers of J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing to the
US may be moving at full speed ahead, but it has not yet impacted import sales prices in the
US for API X-42 electric resistance welded (ERW) line pipe. Import offer prices for API X-42 ERW line pipe to the
US from
Korea,
Taiwan and
Vietnam can still be found in the approximate range of $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt) DDP loaded truck in
US Gulf ports, unchanged in the past week. It should be noted that it is still expected that all three countries will eventually shift their focus to offering line pipe, causing downward pricing pressure due to increased competition. This shift could happen sooner rather than later, as a preliminary determination in the OCTG trade case is anticipated Friday.
In terms of the
US domestic market, nothing has changed. Lead times may still be at four weeks, and supply may continue to outpace demand, but that weakness is being partially balanced by higher domestic hot rolled coil (HRC) spot prices. The most commonly reported transaction range for API X-42 ERW line pipe continues to be seen between $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill, unchanged in the past seven days. As in previous weeks, deals as much as $5.00 cwt. ($110/mt or $100/nt) below the general range can be negotiated on larger orders, indicating continued weakness in the line pipe market.