Spot market pricing for US domestic and import line pipe from Mexico continues to hold in the range of $50.00-$52.50 cwt. ($1,102-$1,157/mt or $1,000-$1,050/nt), ex-mill and FOB Houston, respectively, although service centers that are short on cash flow are said to be negotiating deals.
The problems within the US line pipe market continue to mirror trends seen in recent weeks. First, the rig count is soft, which is further underscored by today’s report from Baker Hughes that the rig count has trended down for the 4th week in a row. Soft oil prices are a second contributor; today, it was reported that West Texas Intermediate crude settled near $55 per barrel.
Market sources say they’re still trying to find bright spots within the market, although overall sentiment remains bleak.