Buying activity within the
US domestic and import J55 ERW oil country
tubular goods (OCTG) casing markets may be scant, but sources close to SteelOrbis say the market isn’t without activity.
“At this point it really doesn’t matter what the price is, domestic or import, because no one is buying anything,” according to one source. Customers, however, are said to be doing “anything and everything” to cancel previously booked orders that were transacted at higher price points.
“If people see anything that resembles anything close to what could be a loophole, they’re going for it,” according to a Texas-based source.
US rig counts have fallen beneath 1,000, according to recent reports, bringing the number of
US-based rigs drilling for oil to their lowest level since December 2010; with demand being as shoddy as it is, no one is chomping at the bit to buy, or stock up on energy pipe.
In terms of prices, everything is holding neutral, although anyone with the right-sized order will have the strength at the negotiating table.
US domestic prices for finished J55 ERW OCTG casing continue to trend at $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), ex-Midwest mill although deep deals are still said to be available based on tonnage.
Taiwanese offer prices for unfinished J55 ERW OCTG casing are still trending in the approximate range of $43-$44 cwt. ($948-$970/mt or $860-$880/nt), while Korean futures offers for the same product rare holding at $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt), both DDP loaded truck in
US Gulf coast ports.