There has been a slight slowdown in import J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing activity over the past week. Many US buyers placed large volume import orders over the last couple months and are now either well-stocked or waiting for previously-placed orders to arrive. Additionally, ongoing competition between offshore mills in Korea, Taiwan, Vietnam, and Turkey is putting some downward pressure on offer prices to the US. Sources tell SteelOrbis that Korean mills have signified their eagerness to raise prices. However, since Korean offer prices--steady in the range of $49.50-$51.50 cwt. ($1,091-$1,135/mt or $990-$1,030/nt) DDP loaded truck in US Gulf ports--are higher than Vietnamese, Taiwanese and Turkish prices by about $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt), Korean mills have not raised prices yet in order to keep their market share.
As for the US domestic market, competition is also a major concern, and because a number of drilling projects were confirmed at prices substantially below the current spot price range of $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill, unchanged from last week, some mills have cut deals for substantially lower prices in response to high domestic availability as well as lower-priced imports.