Although certain sizes and grades of both US domestic and import “on the ground” API X-42 line pipe continue to be vastly available, a number of buyers have started to question how long the material has been in stock. Sources close to SteelOrbis are reporting that while years-old inventory is still, in some cases, available at “fire sale” prices, buyers have become increasingly reluctant to book older-stock material due to quality issues.
Trader sources say they have “definitely seen an uptick in orders, especially on specialty, harder-to-get sizes. We just got an order of Korean material in and as soon as our customers heard about it, they were pretty quick to call in orders,” one source said.
Another source agreed. “The overall market sentiment still isn’t great. That hasn’t changed. But we have seen an uptick in order placement,” he said.
In terms of current prices, futures offer prices for API X-42 line pipe from Korean producers are still being heard in the approximate range of $26.50-$27.50 cwt. ($584-$606/mt or $530-$550/nt), DDP loaded truck in US Gulf coast ports. Domestic pricing for this same grade is also unchanged week-on-week and continues to trend in the approximate range of $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt), ex-Midwest mill.