Will US import OCTG offer prices begin to soften?

Import offer prices for unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing to the US from Korea, Taiwan and Vietnam have increased by $60-$70/mt since the end of January, but decreasing raw materials costs in the Far East compounded by resistance from traders to book orders at higher prices may soon have Asian mills revising their prices. Last week, the sales price in the US on OCTG from all three countries increased $1.50 cwt. ($33/mt or $30/nt) from the previous week to $46.50-$47.50 cwt. ($1,025-$1,047/mt or $930-$950/nt) DDP loaded truck in US Gulf ports. Since the increase, traders have said that the newly higher prices have already become increasingly flexible, and deals at pre-increase levels are still available.  In addition, trader sources say that Indian mills are hungry for orders and are willing to negotiate in ranges approximately $1.50 cwt. below asking prices from Asian mills. 

Meanwhile, the average spot price transaction range for US domestic finished J55 ERW OCTG casing continues to be seen in the approximate range of $61.00-$62.00 cwt. ($1,345-$1,366/mt or $1,220-$1,240/nt) ex-Midwest mill, reflecting no change in the past week. Buyers report that inquires and order activity is steady, but light, and that tight management of inventory is still the norm. As in previous weeks, deals slightly below the average transaction range are available to those interested in booking larger orders.