US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe spot prices have ticked down since our last report two weeks ago, with spot prices softening approximately $1.00 cwt. ($22/mt or $20/nt). Demand remains steady but unexciting, say service center buyers, holding consistent with declining order activity typically seen during the summer months. The main issue at hand is how much declining prices for hot rolled coil (HRC) and scrap will continue to impact spot offers for standard pipe. Although some believe standard pipe spots have not yet reached a bottom, sources told SteelOrbis they believe the market is not far from reaching that point. One thing, is certain: standard pipe price offerings are not expected to rebound until upticks for flat rolled and scrap pricing begin to emerge--which may be sooner rather than later considering price increase announcements from a few flats mills this week.
US standard pipe spot prices are now being reported in the $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt) range, ex-Midwest mill, as capacity still exceeds demand and the annual summer sales slump continues to be underway. As for A-53 ERW BPE Grade A standard pipe import offers, Korean offer prices to the US remain unchanged and continue to be seen in the $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) range, DDP loaded truck in US Gulf ports. As mentioned in previous weeks, it is possible that Korean offers have not yet bottomed out and additional price softening will be seen as July moves forward.