Soft rig count, oil prices still hindering US line pipe market

Friday, 13 September 2019 00:31:26 (GMT+3)   |   San Diego
       

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.


Most Recent Related Articles

US domestic line pipe market still sluggish

US OCTG market uncertain of “true price”

US HSS prices still soft, price increase possibly on the horizon

US line pipe prices

US HSS prices still soft, price increase expected to be imminent