Most domestic spot offers have increased approximately $0.50 cwt. ($11/mt or $10/nt) since our last report and may currently be found in the approximate range of $44.00 cwt to $44.50 cwt. ($970/mt to $981/mt or $880/nt to $890/nt) ex-Midwest mill. Yet this pricing is anticipated to be gone in the very near future as spot prices will continue to follow the white price increase rabbit, as they have consistently done throughout 2010.
The challenge to be overcome still largely relates to the questionable demand levels coming out of end use markets- and the scant few orders that are out there are being pursued, aggressively, by anyone and everyone who has product to move. Domestic prices have gone up substantially, approximately $10.00 cwt. ($220/mt or $200/nt) since January- that's not disputable. What is questionable, however, is the collective drive of salespeople to be able to pass on these increases, especially in that the tubing market is highly fragmented and has more than 20 tubing producers fighting for market share.
For the buyers who are looking to purchase offshore, options are limited, at least in the short term. Korea is rumored to possibly becoming a competitive player in the market once again, but most of Southeast Asian tubing producers are also concerned about the real possibility of antidumping filings in the US. Turkey, however, may be the most current aggressive foreign source in the Gulf with solid offerings in the range of approximately $41.00 cwt. to $42.00 cwt. ($904/mt to $926/mt or $820/nt to $840/nt), duty-paid, FOB loaded truck in Gulf Ports, which reflects a $1.50 cwt. ($33/mt or $30/nt) increase from prices reported two weeks ago.