Import line pipe activity in the US has been steady, but with delivery dates already close to approaching year-end, US buyers may soon begin to scale back activity. While the US' oil rig count has shown growth recently, there is such high availability both domestically and from numerous import sources, that many buyers are "playing it close to the vest," according to one trader in the south. Line pipe shipments to the US from mills in Korea and India are already out to August/September (with deliveries in Q4), and once arrival dates get closer to December, import activity could slow substantially.
Trader sources tell SteelOrbis that the next couple months is a critical window of opportunity for them to book offshore orders; however, import offer prices are stagnant and offshore mills haven't shown willingness to drop prices for the time being. Korea and Taiwanese API X-42 electric resistance welded (ERW) line pipe sales prices in the US are unchanged from last week at $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports. US domestic spot prices are also stable at $61.00-$62.00 cwt. ($1,345-$1,367/mt or $1,220-$1,240/nt) ex-mill, with little change anticipated over the next few weeks.