US domestic spot prices for J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing are still being seen in the range of $63.00-$65.00 cwt. ($1,389-$1,433/mt or $1,260-$1,300/nt) ex-Midwest mill, although buyers and sellers continue to wonder if and when declining rig counts and price softening on US domestic hot rolled coil (HRC) will begin have a negative impact on pricing. According to the most recent report by Baker Hughes, for the week ending October 5, the number of rigs drilling for oil declined by 12 to 1398, marking the fifth decline in oil drilling over the past two months. In addition, HRC spot prices have fallen below $30.00 cwt. ($661/mt or $600/nt) and prices are still rapidly softening. That having been said, pipe service center sources have said that although order activity and inquiries for OCTG are stable, rig counts and falling coil pricing have kept buyers cautious.
Looking offshore, J55 ERW OCTG casing from Vietnam, Taiwan and Korea are still being reported in the range of $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports, reflecting no change since our last report a week ago. Traders have said rumors about potential antidumping suits against the trio continue to gain steam, although definitive action has not yet been taken.