Spot pricing for
US domestic J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing has started to firm on the low end since our last report a week ago, and the most commonly reported transaction range has narrowed by about $1.00 cwt. ($22/mt or $20/nt). Service center sources say the average now lies between $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt), depending on the grade, availability and the size of the order. Deals slightly below this range are still available, despite being fewer and farther between, and additional price firming is expected to take place in mid-February after a final determination is announced in the pending trade case. Order activity and inquiries are stronger than they were in December, and the market is best described as being steady.
Meanwhile, Korean mills are still offering finished J55 ERW OCTG casing to the
US in the previously reported range of $47.25-$48.25 cwt. ($1,041-$1,063/mt or $945-$965/nt) DDP loaded truck in
US Gulf ports, reflecting no change in the past week. They are, however, saying if AD/ CVD margins are higher than the expected 5 percent, futures pricing will go up. In terms of on-the-ground ground Korean J55 ERW OCTG casing, that is also still available, and is selling approximately $2.50 cwt. ($55/mt or $50/nt) below the current futures range.