Neither import nor domestic API X-42 electric resistance welded (ERW) line pipe prices have moved in the last week. Because oil drilling activity in the US is strong, US domestic line pipe demand from drilling companies is equally strong, as a substantial amount of domestically produced line pipe goes mill-direct to a project. However, the domestic line pipe spot market is being negatively pressured by import competition; according to distributor sources, domestic mills have dropped prices well below the current $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex- mill range to be more competitive with current import offer prices.
Import offer prices from Korea and Vietnam to the US are unchanged from last week, and continue to be offered to US buyers at $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports, with most Vietnamese prices found toward the bottom end of the range. Similar to the import OCTG casing market, traders are reporting fewer line pipe inquiries over the past couple weeks due to more lively purchasing activity a few weeks ago. Nonetheless, because US drilling activity is showing a few signs of slowing down (US oil rig counts fell by seven last week, but the drop followed consistent increases in the weeks prior), this week's tempered activity may be short-lived.