As predicted in our last report two weeks ago, US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe spot prices have softened again. Some mills have been increasingly flexible with select customers on the heels of flat rolled price decreases throughout February and most of March. But while flat rolled prices have stopped falling for the time being, uncertainty in that market has spilled over into the welded pipe market, and buyers have slowed purchasing activity in case prices fall further. In the last two weeks, spot prices slipped by $1.00 cwt. ($22/mt or $20/nt) to $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-Midwest mill, with further drops possible if buyer confidence, and in turn activity, doesn't pick up soon.
US buyers have also been reluctant to place substantial orders overseas, which has kept futures activity mild, and driven Korean and Taiwanese mills to lower offer prices to the US by $0.50 cwt. ($11/mt or $10/nt) in the last two weeks. While not many US customers are placing sizable orders offshore, the new $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf Coast ports range is still well below US domestic spot prices, and trader sources tell SteelOrbis that bookings have not entirely turned silent.