Import activity of most pipe products for the US continues to be tepid, as potential buyers are too skeptical about the sustainability of escalated domestic hot rolled coil (HRC) prices to warrant purchasing for deliveries three months out.
Inventories are slowly being run down in the US domestic standard pipe market as HRC prices continue to trend upward-now at about $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt) ex-Midwest mill. But while HRC prices are likely to stay neutral or increase slightly further in the coming weeks, the expectation is that HRC, and consequently standard pipe prices, will begin to fade by the time any new import pipe orders make it to US ports. And so, many import buyers have chosen to sit on the sidelines for the time being-especially considering that current replacement costs, even from offshore sources, are above where they can resell the product.
Regardless, import standard pipe prices are largely unchanged from two weeks ago and electric resistance weld (ERW) black plain end (BPE) A53 Grade A standard pipe offers from India and Dubai continue to be found at about $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) and $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt), respectively, both duty-paid FOB loaded truck in US Gulf ports. Both India and Dubai are also currently offering ERW galvanized plain end (GPE) A53 Grade A standard pipe at approximately $58.00-$60.00 cwt. ($1,279-$1,323/mt or $1,160-$1,200/nt) duty-paid FOB loaded truck delivered to US Gulf ports, but not stirring much interest.
Interest in offshore line pipe remains mediocre as well, although slightly better than standard. In general, the most competitive current offers of API X42 ERW line pipe are being generated from Korea for approximately $51.50-$52.50 cwt. ($1,135-$1,157/mt or $1,030-$1,050/nt) duty-paid FOB loaded truck in US Gulf ports.
Nonetheless, market activity has been exceptionally quiet this week, but could become a little more lively over the next few weeks following the National Association of Steel Pipe Distributors (NASPD) annual convention in Houston, Texas where steel producers, distributors, and traders will have an opportunity to gain a better feel of the market, and possibly jump-start purchasing activity.