A general summer slowdown in US energy pipe activity has pushed import prices for Korean and Taiwanese API X42 electric resistance welded (ERW) line pipe down again after prices fell $0.50 cwt. ($11/mt or $10/nt) about two weeks ago. Korean and Taiwanese line pipe prices have decreased another $0.50 cwt. over the past week and are now in the range of $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) DDP loaded truck in US Gulf ports.
Korean and Taiwanese J55 ERW oil country tubular goods (OCTG) casing prices for the US have also fallen about $0.50 cwt. in the last week, but the decline isn't due to insufficient demand. Sources tell SteelOrbis that the decline in Korean and Taiwanese offer prices to the US is a direct response to OCTG mills in Vietnam trying to buy into the US import market, and taking market share away from Korea--consistently the US' primary source of imported OCTG pipe according to US Steel Import Monitoring and Analysis (SIMA) data.
Vietnamese J55 ERW OCTG casing prices are currently $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) DDP loaded truck in US Gulf ports, about $1.00 cwt. ($22/mt or $20/nt) lower than Korean and Taiwanese prices, now at $52.00-$53.00 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt) DDP loaded truck in US Gulf ports. Turkey is also active in the US OCTG casing market, and current offers are in the range of $51.50-$52.50 cwt. ($1,135-$1,157/mt or $1,030-$1,050/nt) DDP loaded truck in US Gulf ports.
As for the US domestic energy pipe market, drilling projects are keeping demand, particularly for OCTG casing, steady, but sources indicate that buyers still believe the domestic energy pipe market is too volatile because of an unstable US economy and a softening US domestic flats market to take possession of heavy inventories, and are therefore only making purchases as needed. Nonetheless, domestic spot prices have remained firm in the last week. J55 ERW OCTG casing spot prices have stayed in the range of $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill. Domestic API X42 ERW line pipe spot prices haven't moved either, and are still $65.50-$66.50 cwt. ($1,444-$1,466/mt or $1,310-$1,330/nt) ex-Midwest mill.