The average US domestic spot prices for API X-42 electric resistance welded (ERW) line pipe have remained unchanged since our last report a week ago. Prices continue to be reported in the range of $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt). Service center sources indicated that buyers are continuing to monitor the weekly shifts in the number of US rigs drilling for oil. Last Friday, Baker Hughes reported the number of US rigs drilling for oil fell from 1,419 to 1,409 and the total rig count declined by a whopping 30 rigs. This is a part of a broader trend over the last two months, which is severely affecting market confidence in the US energy pipe market. In August, the overall rig count fell by a total of 30 after declining by 35 in July, and last week’s 30-rig drop is already setting the tone for another disappointing month. Expectedly, this has done little in terms of positively impacting orders and inquiries for API X-42 ERW line pipe, which remain steady yet unexciting. Service centers believe this trend will likely hold until rig counts begin to rebound.
Shifting focus offshore, the most notable change in the past week is the $1.50 cwt. ($33/mt or $30/nt) pricing decline on import API X-42 ERW prices from Taiwan. Taiwanese offers are now being reported in the range of $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports. Korean offer prices, though, remain unchanged since our last report a week ago and continue to be seen in the same range as Taiwanese offerings. Traders said that these pricing levels are continuing to garner interest, although some would-be buyers have said they are holding out, wondering if additional drops on import pricing will materialize. Although additional drops on import pricing are not expected, some continue to wonder if the market has bottomed out.