Prices for
US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe may have remained stagnant in the past two weeks, but some question whether price firming within the
US domestic hot rolled coil (HRC) market will cause upward price pressure for standard pipe. The most commonly reported spot transaction range is still between $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill. However, recent price increases within the
US domestic flat rolled market have begun to gain traction, and prices for hot rolled coil (HRC) could jump by an additional $1.00 cwt. ($22/mt or $20/nt) before the month is over. If this trend continues, standard pipe mills may give the recently failed price increase another go. For now, though, the current forecast remains at neutral. Demand is consistent, but lacking fervor, as buyers are continuing to avoid stock buys and are only placing orders as-needed.
Import offer prices for A-53 ERW BPE Grade A standard pipe to the
US from Vietnam and
Korea have also held neutral in the past two weeks, with the most commonly reported transaction range from both countries still trending at $39.50-$40.50 cwt. ($871-$893/mt or $790-$810/nt) DDP loaded truck in
US Gulf Coast ports. Weak interest in offshore bookings continues to permeate the market, as is evidenced by the most recent
US Steel Mill Monitoring Import and Analysis (SIMA) data. September marks a 14-month low in terms of total import tonnages, coming in at 59,433 mt (census data), with the
US’ two largest offshore sources of import standard pipe being
Russia and Vietnam, at 13,582 mt and 5,386, mt (license data) respectively. Trader sources continue to report that this trend is largely due to slim margins and long lead times.