Short, four-week lead times for US domestic API X-42 electric resistance welded (ERW) line pipe are leading US mills to become increasingly flexible with pricing. Although the most commonly seen range continues to be $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt), stable as compared to last week, deals approximately $3.00 cwt. ($66/mt or $60/nt) under the spot range have also been heard. Service center sources have said mills’ need to fill their books is leading them to offer deals to bigger customers. These discounts, compounded by recent pricing declines in US domestic flat rolled prices, have some buyers wondering if line pipe prices will remain at current levels or soon weaken as well. Currently, pipe buyers are in holding pattern, buying only what they need as they keep close watch to see if predicted pricing downticks materialize.
As for imports, import API X-42 ERW prices from Taiwan and Korea continue to be seen in the range of $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports, unchanged over the past week. Traders have said that inquiries and order activity are “stable yet not extraordinary” and buyers are only placing orders on an as-needed basis. Although a number of US buyers still find offshore prices to be attractive, some have indicated that they are holding off placing larger orders due to uncertainty regarding whether Korean and Taiwanese prices have truly bottomed.