US import OCTG activity continues to be stagnant as many distributors and traders are attempting to dispose of excess material rather than book significant orders offshore. Heavy volumes of J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing arrived in the US the last couple months as many buyers anticipated a strong rig count this spring, and stocked up heavily earlier this year. However, sources tell SteelOrbis that because the natural gas rig count has been largely on the decline, there is an excess of pipe available now. Meanwhile, futures offers from offshore have not changed again this week, and Korean, Taiwanese and Indian prices in the US remain between $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) DDP loaded truck in US Gulf ports, with offers from Turkey and Vietnam heard on the lower end of a similar range.
In the US, while domestic project-specific OCTG business has been steady, mills with excess tons continue to find themselves competing with less expensive imports on the spot market. The general spot range remains between $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill, but sources indicate that some buyers are able to garner discounts when mills have holes in their rolling schedules.