Import offers on J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing from Vietnam have declined by approximately $1.00 cwt. ($22/mt or $20/nt) since last week. The drop puts Vietnamese prices in the same range as import offers from Korea and Taiwan, which have remained stable since last week. All three countries’ sales prices for the US are in the range of $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports. Deals slightly below those ranges continue to be available to buyers who are looking to make larger purchases.
As for the US domestic market, all eyes are strongly focused on the US rig count. According to the most recent report by Baker Hughes, for the week ending September 7, the number of rigs drilling for oil dropped from 1,419 to 1,409, all but offsetting the previous week’s increase of 11. The number of rigs drilling for natural gas rigs was also down week-on-week, falling from 473 to 452. These declines are not boding well for order activity and inquiries for US domestic J55 ERW OCTG. Activity on both fronts remains lackluster but still steady, with a belief this trend will continue until rig counts indicate a more positive upswing. In terms of pricing, US domestic spot prices for J55 ERW OCTG casing continue to be offered in the range of $63.00-$65.00 cwt. ($1,389-$1,433/mt or $1,260-$1,300/nt) ex-Midwest mill, indicating no change since last week.