Softening US flats market pushes down standard pipe prices

Thursday, 17 May 2012 02:09:13 (GMT+3)   |  

Over the last few weeks, US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe spot prices have softened as a result of insufficient demand to offset declines in US flats prices over the past month. For the most part, pipe spot prices are down about $1.00 cwt. ($22/mt or 20/nt) to $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) ex-Midwest mill, but activity under the range is growing more common. Another downward shift is likely by the end of the month, according to SteelOrbis sources, as long as the flat rolled market remains weak.

Expectedly, US buyers aren't finding imports particularly attractive at the moment considering the pessimistic US domestic pipe price trend and a $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) increase in import offer prices to the US since late April. Korean mills are now offering A-53 ERW BPE Grade A standard pipe to the US at $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports, and until import Korean mills drop import prices or US domestic spot prices firm again, import bookings will remain sluggish.


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