The US domestic and import line pipe markets continue to tread water in a sea of uncertainty, as cheap oil prices and ever-falling rig counts are remain the Achilles heel of the US energy pipe sector.
US crude futures prices have started to rebound in the past few weeks, but those upticks have not been substantial enough to restart drilling projects. Sources close to SteelOrbis continue to report that inventories of API X-42 electric resistance weld (ERW) line pipe are still pretty healthy, and with the falloff in demand, buyers aren’t rushing out to place orders.
US domestic spot prices are steady, according to Midwest-based sources, still at approximately $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-Midwest mill, while Taiwanese and Vietnamese futures offers remain in the approximate range of $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck in US Gulf Coast ports. But as with last week, sellers are reportedly amply ready to negotiate with anyone who wants to bring a larger-sized order to the table.