Spot market prices within the US domestic J55 ERW OCTG continue to trend in the range of $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, but sources say that the deals and discounts that have become increasingly prevalent may soon be off the table.
Flat rolled steel mills announced they would be raising prices by a minimum of $2.00 cwt ($44/mt or $40/nt) a ton effective with all new orders, and Nucor Tubular today announced they would be raising prices on US HSS tubing by that same amount.
Although it’s widely held that mills will have an “uphill climb” in terms of pushing prices up, it’s largely believed that this week’s announcements may prevent prices from eroding further. If substrate costs stop falling, sources note, this may be good news for the US domestic energy pipe markets.
It’s also worth noting that oil prices have started to climb in the wake of US-announced sanctions against Venezuela. Saudi Arabia has also indicated it’s committed to helping to drive oil prices higher, which could in the long term, help with US drilling efforts and thus demand for OCTG casing.