Import line pipe activity in the US quiet due to future price uncertainty

Wednesday, 14 March 2012 00:48:52 (GMT+3)   |  

Import API X-42 electric resistance welded (ERW) line pipe activity has continued on its quiet trend this week, although there is no shortage of offers available. Korean offer prices are between $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports, as they were a week ago, while offers from Vietnam and Turkey are about $0.50 cwt. ($11/mt or $10/nt) less. Indian offer prices are also stable and can be found between $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) DDP loaded truck in US Gulf ports. However, because the gap between import prices and US spot prices is so significant, import activity isn't completely quiet, and a few trader sources have informed SteelOrbis of plans to order for future stock as well.

Buying activity in the US domestically is also relatively quiet, and with US flats prices having softened substantially over the past month, there is some price uncertainty for welded line pipe as well. So with little clarity as to whether US mills will be able to hold domestic API X-42 ERW line pipe spot prices steady in the range of $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex-mill, buyers are only buying what they need, and are avoiding stocking their inventories too high.


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