For the most part, demand for line pipe in the US--both domestically produced and imported--has been steady, but general market uncertainty continues to translate into cautious buying patterns. The US rig count has been fluctuating over the past couple months, but the trend continues to point upward. Even so, prices in other markets such as scrap and flat rolled have been weakening, making buyers of welded line pipe nervous that declines in those market will eventually spill over into the line pipe market, therefore keeping purchasing activity only moderate. US domestic API X-42 electric resistance welded (ERW) line pipe spot prices remain between $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill, unchanged from last week, but purchases under the range persist.
Import API X-42 ERW line pipe offer prices to the US have already fallen, dropping another $0.50 cwt. ($11/mt or $10/nt) over the past week after declining $1.00 cwt. ($22/mt or $20/nt) a week ago. Taiwanese and Korean offers are now $46.00-$47.00 cwt. ($1,014-$1,037/mt or $920-$940/nt) DDP loaded truck in US Gulf ports. Trader sources indicate that while prices are likely to be unchanged in the next couple weeks, another drop next month is possible, so most are waiting for prices to bottom out before placing any major offshore orders.