Pricing volatility within global oil markets and uncertainty about the future is continuing to hinder both the US domestic and import J55 ERW OCTG casing markets. “Everything is slow. Business is off substantially and we’re just trying to ride this thing out.” As with last week’s report, the official ex-Midwest mill prices may be unchanged, as US domestic spot prices for finished J55 ERW OCTG casing are still trending in the approximate range of $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), but there are deals to be had at the distribution center level.
Futures offers are also unchanged, but trader sources continue to report that everything is flexible and that “no one is buying.” Offers for unfinished J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing from Korea are sideways at $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt), DDP loaded truck US Gulf Coast ports, but trader sources say deals up to $2.50 cwt. ($55/mt or $50/nt) are easily attainable. On-the-ground Korean J55 ERW OCTG casing is said to be available at “well below replacement cost.”