According to the most recent data from Baker Hughes, the number of US rotary rigs drilling for oil declined by another four last week, bringing the current number of US rigs drilling for oil to 640. Declines in rig counts are hardly good news for the US domestic and import J55 electric resistance weld (ERW) oil country tubular goods (OCTG) markets, who say activity, inquiries and orders are slow.
“There isn’t much of anything going on,” according to one Texas-based source. “There are a few inquiries taking place on some specialty sizes but other than that, it’s quiet.” Cheap oil prices continue to be a concern, according to another source, who noted that while spot market prices have not officially changed, buyers can essentially name their price. Ex-mill Midwest mill pricing continues to trend at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) while futures prices from Korean mills are available at approximately $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck US Gulf Coast ports.