Pricing within the US domestic line pipe market has become a bit more flexible in the past week; sources in the Midwest and Southeast have confirmed that current spot market prices are now trending at $67.50-$71.50 cwt. ($1,488-$1,576/mt or $1350-$1430/nt), ex-mill.
Throughout July, prices for API X-52 line pipe had trended between $70.00-$72.50 cwt. ($1543-$1598/mt or $1400-$1450/nt), ex-mill. Many within the marketplace have said that while demand remains good, due to strong drilling demand and high global oil prices, they did not believe that prior price points, which were a direct result of Section 232 tariffs, were sustainable.
The question as to how soft US line pipe prices will become has yet to be answered. Some have noted that despite the widespread belief that US HRC prices could correct by as much as $5.00 cwt. ($110/mt or $100/nt) due to a forecast rise in HRC imports, it’s not believed that this will place too much downward pressure on energy pipe prices.
“Pipe prices are expected to remain a bit stronger due to Korean quota shortages,” a source said.
Not surprisingly, trader sources have indicated that Korean producers have a strong desire to get back into the US market, as they believe current prices have peaked. New offers from Korean mills, for Q1 shipment, are expected in the next few weeks. Some believe that Koran steelmakers will ship their entire Q1 allocation during January, which could also place downward pressure on US line pipe prices.