The
US oil rig count has continued to inch up but sources close to SteelOrbis question how long the upticks will last.
The most recent data from Baker Hughes indicated that as of week ending May 5, the number of rotary rigs drilling for oil increased by six, to 703; this reflects a year-over-year gain of 375 rigs.
Oil prices, however, are slipping. And while news outlets report that Saudi Arabia’s energy minister has said production cuts could continue into 2018, oil prices are enduring pressure, with some feeling that oil barrel prices could land at $45-$47.
“The market is good right now but if oil continues to slip that will definitely change things,” one source said. “It’s only a matter of time before that will catch up to OCTG demand.”
Current prices for
US domestic finished J55 ERW OCTG casing is still being heard at $50-$52 cwt. ($1102-$1146/mt or $1000-$1040/nt) ex-mill.
In terms of imports, Korean mills are “starting to make some quiet offers.” But while prices for unfinished,
US import J55 ERW OCTG casing in the
US domestic market are being heard between $42.50-$44.00 cwt. ($937-$970/mt or $850-$880/nt), DDP loaded truck in
US Gulf coast ports, “that pricing is before the revised dumping margins,” one source said. “When you consider the 25 percent margin against Nexsteel, that essentially prices them out of the market.”