Numerous sources close to SteelOrbis continue to lament that the current state of the US domestic and import oil country tubular goods (OCTG) market “feels like it’s on life support.”
According to the most recent data from Baker Hughes, the current number of US rigs drilling for oil has remained stable week-on-week, at 318; the current number of US-based rigs drilling for oil is 341-rigs less than this time last year.
One service center source, who deals exclusively in energy pipe products, including US domestic and import OCTG, indicated his company was looking to diversify their product offerings “just so we can sell something.”
In terms of pricing, as with last week, offer price ranges from both Korean and Taiwanese producers of unfinished J55 ERW OCTG casing are still being heard in the approximate range of $27.50-$29.50 cwt. ($606-$650/mt or $550-$590/nt), DDP loaded truck in US Gulf Coast ports, although interest in futures continues to trend weak due to market uncertainty and extended lead times.
In terms of domestic market prices, sources close to SteelOrbis say those are “all over the map. Pipe mills are still asking for higher prices but there’s plenty of material that’s been sitting on the ground since 2013 that can be had at a massive discount,” another source said. “The best gage of price is whatever a customer is willing to pay.”