Last week, Tenaris announced they would be raising US domestic line pipe prices by $3.75 cwt. ($83/mt or $75/nt) effective immediately. The attempted price hike had nothing to do with end-use demand (US rotary rig count levels continue to trend at historic lows; oil production is down substantially year-on-year,) but the move was instead tied to upticks in US domestic scrap, and thus, US domestic hot rolled coil (HRC) pricing.
ArcelorMittal USA this week also announced a new minimum base price of $26.00 cwt. ($573/mt or $520/nt) for HRC, which has many within the US domestic energy pipe industry of the belief that pipe mills will attempt to be firm with their new desired price levels. On the other hand, sources note that higher energy pipe prices will do little to help the drilling industry, which continues to be impacted by volatile global oil prices.
In terms of pricing, futures offers from both Korean and Taiwanese producers for API X-42 EWR line pipe continue to be heard in the approximate range of $25.50-$26.50 cwt. ($562-$586/mt or $510-$530/nt), DDP loaded truck in US Gulf Coast, while US domestic spot market prices are still being heard at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), ex-Midwest mill.
As with last week, sources close to SteelOrbis have indicated that certain sellers may be willing to sell on-the-ground inventory may be available at a significant discount due to a need for cash flow.