Soft oil prices continue to hinder US domestic line pipe activity

Monday, 21 September 2015 00:01:29 (GMT+3)   |   San Diego
       

The situation within the US domestic and import API X-42 electric resistance weld (ERW) line pipe market is similar to what was seen a week ago. Cheap oil prices continue to hinder the market, and sources close to SteelOrbis say that order activity is scant. Ex-Midwest mill spot pricing continues to trend at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), but deals well below this range are likely available for the right-sized tonnage.

Futures offers from Korean producers is also still negotiable, as mills are hungry for orders.  Although the most commonly reported futures rage is trending between $30.50-$32.50 cwt. ($672-$717/mt or $610-$650/nt), DDP loaded truck in US Gulf coast ports, sources report that distribution centers are selling in-stock Korean API X-42 at below replacement costs as a means of moving inventory.


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