US domestic J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing spot prices have been under downward pressure for the past month from overcapacity, a strong but stagnant US oil rig count, and relentless import competition. However, whileUS mills have been able to keep prices level in part because of neutral import prices, some offshore mills dropped their offer prices to the US in the last week and so US spot prices may not remain between $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill (unchanged from a week ago) for much longer.
Korean J55 ERW OCTG casing prices in the US are down $1.00 cwt. ($22/mt or $20/nt) from a week ago to $48.50-$50.50 cwt. ($1,069-$1,113/mt or $970-$1,010/nt) DDP loaded truck in US Gulf ports, with some US traders speculating that prices could fall at least another $0.50 cwt. ($11/mt or $10/nt). Taiwanese prices are in the same range after falling about $0.50 cwt. in the last week, with Indian offer prices are on the higher end of the same range. Turkey and Vietnam are offering J55 OCTG casing to the US in the range of $48.75-$49.50 cwt. ($1,075-$1,091/mt or $975-$990/nt) DDP loaded truck in US Gulf ports, steady from last week, but with the US' largest import OCTG source--Korea--dropping prices, Turkish and Vietnamese offers will also likely decline in the next week or two.