Offshore line pipe mills “duking it out” for US orders

Vietnamese, Philippine and Taiwanese mills have continued to focus strongly on exporting API X-42 electric resistance weld (ERW) line pipe to the US, as the US’ antidumping and countervailing duty investigations against oil country tubular goods (OCTG) casing has essentially pushed them out of that market.  The current range from all three countries has held steady in the past seven days and is still at $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt), DDP loaded truck in US Gulf Coast ports.  Korean mills are also still offering, but in the higher range of $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt), DDP loaded truck in US Gulf Coast ports.  This, according to sources, is garnering little interest from traders.  Demand is consistent, but slow, and offshore mills are hungry for orders.

Meanwhile, spot prices for US domestic API X-42 electric resistance welded (ERW) are still in the approximate range of $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill, unchanged in the past seven days.   Industry insiders say that lead times are short, and mills are continuing to produce line pipe at rates that exceed marked demand, which has continued the current neutral price forecast.