After rumblings of a possible increase in import Korean API X42 electric resistance welded (ERW) line pipe prices to the US quieted last week, the trend for line pipe has reversed and Korean sales prices in the US have fallen $1.50 cwt. ($33/mt or $30/nt) into the range of $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports. Trader sources informed SteelOrbis that Korean mills that produce oil country tubular goods (OCTG) casing as well as standard pipe in addition to line pipe have decreased pipe prices across the board because of lower activity and a major drop in raw material costs in October.
Indian API X42 ERW line pipe offer prices to the US have also fallen, but by a more measured $0.50 cwt. ($11/mt or $10/nt) in the last week to $50.50-$51.50 cwt. ($1,113-$1,135/mt or $1,110-$1,030/nt) DDP loaded truck in US Gulf ports. Indian mills are actively looking for orders from the US, explained one trader in the South, but are reluctant to officially take prices down. However, if quoted a price "not too drastically" below the official range, they may very well be willing to take the order.
On the other hand, US domestic API X42 ERW line pipe spot prices have held their ground in the last week and can still be found between $63.00-$64.00 cwt. ($1,389-$1,411/mt or $1,260-$1,280/nt) ex-Midwest mill. Similar to the domestic oil country tubular goods (OCTG) casing market, enough business from contract customers is keeping line pipe producers from striking too many deals on the spot market despite major drops in domestic hot rolled coil (HRC) spot prices in just the last couple weeks. Nevertheless, if domestic HRC spot prices do continue to fall in the next couple weeks, line pipe prices may move lower as well.