Spot prices for US domestic API X-42 electric resistance welded (ERW) line pipe have trended sideways since our last report a week ago, with sources close to SteelOrbis confirming prices remain in the $57.00-$59.00 cwt. ($1,257-$1,300/mt or $1,140-$1,180/nt) range, ex-Midwest mill. Ongoing rig count declines are also not doing much in terms of boosting confidence, say buyers, especially considering the recent report by Baker Hughes that notes an additional 18 rigs have dropped off in the past week, following additional declines seen throughout July.
As for imports, API X-42 ERW line pipe offers to the US out of Korea and Taiwan are also unchanged over the past week and can still be found between $47.00-$48.00 cwt. ($1,037-1,059/mt or $940-$960/nt)DDP loaded truck in US Gulf ports. According to trader sources, there is minimal activity taking place currently, and this trend will likely continue until the summer months conclude. For now, buyers are taking a watch-and-wait stance when it comes to the market, and are unwilling to take chances on futures until lead times bump the arrival of product until early 2013.