Despite price increases from a number of US domestic welded standard pipe producers over the last couple weeks, spot prices are stagnant. In the last two weeks, Wheatland Tube, Nova Tube, Allied Tube and Conduit, among others, have announced $2.00 cwt. ($44/mt or $40/nt) price increases on A-53 electric resistance welded (ERW) black plain end (BPE) standard pipe, likely a response to two price increases from flats mills over the last month. However, because the flats increases were unsuccessful and prices have actually started to drop in the last week, industry sources are skeptical about the announced pipe increases, for which there is little basis, considering measured demand levels.
A few sources commented that pipe mills didn't necessarily believe they would be able to achieve any quantifiable increase, but rather the announcements were to prevent further price deterioration, and keep A-53 ERW BPE Grade A standard pipe spot prices in the range of $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-Midwest mill. According to trader sources, Korean mills may also attempt a price increase in the near future after a price drop a month ago; but for the time being, offer prices are unchanged in the range of $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf Coast ports, with offers from Taiwan and Turkey within a similar range.