Import OCTG casing prices to the US level off

SteelOrbis has learned that import offers on J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing from Vietnam, Taiwan and Korea seemed to have finally leveled off and remain unchanged since last week. Sales prices from all three countries continue to be reported in the range of $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports. Traders have said that US domestic mills are continuing to make a lot of noise about recent declines in import offers, hopeful that threats of an anti-dumping suit will cause offshore mills to “cease and desist” their price slashing. But while some point out that speculation of this type of suit has been looming for at least a year, others believe the US is well on its way to the tipping point given the substantial disparity between US domestic and import offer prices.

As for the US domestic market, spot prices have sustained in the range of  $63.00-$65.00 cwt. ($1,389-$1,433/mt or $1,260-$1,300/nt) ex-Midwest mill, reflecting no change since last week. Buyers, though, remain wary about making purchases beyond what they currently need due to a softening trend taking place within the US domestic flats market. Although a crossover effect has yet to materialize, many continue to wonder whether OCTG prices will follow suit. For now, though, pricing levels, order activity, and demand remain little changed over the last few weeks.