Import activity in the US standard pipe market has been lukewarm over the past couple of weeks as sustainability of higher prices in the US domestic market is still questionable.
Spot prices for US domestic electric resistance weld (ERW) black plain end (BPE) A53 Grade A standard pipe are now approximately $56.00-$58.00 cwt. ($1,235-$1,279/mt or $1,120-$1,160/nt) ex-mill, but sources have reported to SteelOrbis that spot ranges are a moving target, and mills continue to push for higher prices, issuing price increase announcements much in line with domestic hot rolled coil (HRC) price increases. HRC spot prices are currently at about $42.00-$44.00 cwt. ($926-$970/mt or $840-$880/nt) ex-Midwest mill.
But while HRC producers have been successful in enforcing mid-February increases, pipe mills are encountering growing resistance from buyers who are wary of the increasingly higher pipe prices when demand levels appear little changed, leading to many buyers being less confident in the sustainability of current and any future increased pipe prices.
And so, purchasing activity from offshore continues to be light as most US buyers had anticipated the continued run-up in domestic standard pipe prices over the past few months and bought heavily in late December and January. Some orders have been placed over the past few weeks with Korean and Taiwanese mills, where the most competitive offshore offers are currently being generated. ERW black BPE A53 Grade A standard pipe from Korea and Taiwan ranges from approximately $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) duty-paid FOB loaded truck in US Gulf ports, but those offers are expected to increase in the coming weeks due to the rising prices in the Korean and Taiwanese domestic markets.
Import activity could increase, however, if the US domestic pipe market begins to exhibit more stable pricing trends. If domestic mills fully collect on their announced increases, buyers will be more confident purchasing offshore product, especially with current import lead times into June.