Producers of
US domestic finished J55 ERW oil country
tubular goods (OCTG) casing are feeling a financial pinch these days in the wake of increased flat rolled costs and ever-flexible import prices. Margins are being squeezed, according to industry insiders, who say the higher cost for domestic hot rolled coil (HRC) is having an impact across just about all market segments. Domestic spot prices, though, have continued along their months-long sideways trend, still in the approximate range of $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt), ex-Midwest mill, with the expectation that this range will hold steady in the upcoming months.
Meanwhile, trader sources have confirmed that Taiwanese mills have become increasingly flexible with offers of unfinished J55 ERW oil country
tubular goods (OCTG) casing to the
US, and have softened prices by approximately $0.50 cwt. ($11/mt or $10/nt) in the past seven days, bring their range in line with Korean mills who have been offering at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), DDP loaded truck
US Gulf coast ports. There isn’t a lot of forward booking going on at the moment, according to trader sources, and offshore mills are continuing to be aggressive with their pricing in hopes of enticing orders.