News that the US rig count declined by an additional 19 rigs last week has furthered the pessimistic view in the US domestic and import J55 ERW OCTG casing markets.
“Nothing has changed,” a source said. “The market stinks. Pipe mills have been reducing shifts and some distributors have begun selling below replacement cost just to gain sales. Prices are everywhere and there’s not a lot of optimism within the market based on current market conditions.”
In terms of pricing, spot market prices for domestic and import (Korean) J55 ERW OCTG casing continue to be heard in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt), ex-mill and DDP loaded truck in US Gulf Coast ports, respectively. As in previous weeks, deals below this range are available on a case-by-case basis.