The US standard pipe market continues to suffer from little interest in import offers, a problem not likely to change in the near term.
US domestic pipe mills are still trying to hold their prices steady despite hot rolled coil (HRC) spot prices falling approximately $3.00 cwt. ($66/mt or $60/nt) since early May. However, "they'll have to give eventually-order books can't stay empty forever," commented one distributor in the South. And when they do, the drop in pipe prices is expected to be relatively swift.
As expected, import activity is little changed since our last report two weeks ago. While Gulf coast traders tell SteelOrbis that demand hasn't slowed significantly in the last couple weeks, it hasn't showed any signs of picking up either, and will likely remain tepid through the balance of Q2. "It's going to be slow-go for a lot of us in June," said one trader in the South. Pricing uncertainty in the US domestic market coupled with unchanged import offer prices has resulted in almost no immediate interest in booking futures.
Still, offers are abundant. Taiwanese, Korean and Indian offers of electric resistance weld (ERW) black plain end (BPE) A53 Grade A standard pipe offer prices remain in the range of $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) duty-paid FOB loaded truck in US Gulf ports. Amid slow import activity however, offers are negotiable for as much as $1.00 cwt. ($22/mt or $20/nt) under the range. Offers from Dubai have not changed in the last week either, and are still 49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) duty-paid FOB loaded truck in US Gulf ports.