It’s been less than 2 weeks since Joe Biden was sworn in as President of the United States, and since that time, he’s failed to make friends within the domestic energy pipe industry. For example, on Jan. 20 he signed an executive order that revoked the Keystone XL pipeline permit. Suffice to say, stakeholders within the domestic energy pipe industry are “more than disappointed.”
And while the long-term impacts of still-to-be-determined policies from the Biden administration have yet to be known, in the short-term, pipe prices continue to be elevated due to higher input costs and supply constraints.
SteelOrbis sources have confirmed that spot market pricing for US domestic API X-52 line pipe is heading toward $70 cwt. ($1,534/mt or $1,400/nt) for new material, but inventory is still reportedly selling $5.00-$7.50 cwt. ($110-$165/mt or $100-$150/nt) cheaper, ex-warehouse. Sources say the situation for J55 ERW OCTG casing is the same, but there’s “still plenty of pipe on the ground” that’s selling for $60.00-$62.50 cwt. ($1,323-$1,378/mt or $1,200-$1,250/nt), ex-warehouse.