US domestic spot prices for standard pipe have continued falling since May, but one major mill is attempting to reverse the trend.
Last week, the largest US pipe manufacturer in the US, US Steel, announced a price increase of $3.75 cwt. ($83/mt or $75/nt) on standard pipe prices, citing higher input costs. The increase announcement, while catching many in the pipe market by surprise, is akin to a move seen by US domestic flat-rolled mills in mid- to late-May. Domestic flats mills attempted to stem the decline of spot prices by issuing increases ranging from $2.00-$4.00 cwt. ($44-$88/mt or $40-$80/nt) depending on the mill. While easing the decline of flats prices, the mill announcements have not shown any signs of actually reversing the downtrend.
The result of US Steel's announcement on domestic pipe prices is likely to be similar, and is garnering skepticism from industry insiders about how successful the increase will be--if at all--especially considering that no other pipe mill has followed the increase yet. Additionally, the last set of increases announced by US pipe mills (in March and April, depending on the mill), for $6.25 cwt. ($138/mt or $125/nt) were not fully accepted--only about $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) of the announced increase was reflected in spot prices. For the time being, US domestic electric resistance welded (ERW) black plain end (BPE) A53 Grade A standard pipe prices are still softening, falling about $1.00 cwt. ($22/mt or $20/nt) over the last two weeks into the range of $51.00-$53.00 cwt. ($1,124-$1,168/mt or $1,020-$1,060/nt) ex-Midwest mill, with prices heard even below the range.
Import standard pipe offers to the US have fallen as well over the past two weeks, on the back on low US-buyer interest in booking futures when US domestic prices are still falling. Korean and Indian ERW BPE A53 Grade A standard pipe have fallen about $2.00-$3.00 cwt. to the current range of $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) DDP loaded truck in US Gulf ports. Traders tell SteelOrbis that booking activity is still relatively "decent," but with falling US prices, US buyers are holding off placing an order offshore until US prices stabilize.