As spot prices remain unchanged from early March, activity in the US domestic energy pipe market continues to be steady while import activity is only mediocre, at best.
Sources have indicated to SteelOrbis that inventory holes from service centers and end-users in the US domestic market are driving some pent up line pipe demand, with many expecting a strong Q2. On the oil country tubular goods (OCTG) casing side, inventories are more stocked at the service center level, with some even reporting excessive inventory.
For the most part however, demand for both OCTG casing and line pipe has continued to be steady throughout March and spot prices are unchanged from previously reported levels two weeks ago. Spot prices for J55 electric resistance welded (ERW) OCTG casing still range from $65.00-$67.00 cwt. ($1,433-$1,477/mt or $1,300-$1,340/nt) ex-mill while spot prices for API X42 ERW line pipe are currently in the level of $59.00-$61.00 cwt. ($1,301-$1,345/mt or $1,180-$1,120/nt) ex-West Coast mill.
Offshore, orders being placed for steel futures are light and even the most competitive import offers are generating minimal activity. Regardless, Korean and Taiwanese energy pipe offers are unchanged from two weeks ago and API X42 ERW line pipe offers still range from $51.50-$53.50 cwt. ($1,135-$1,157/mt or $1,030-$1,050/nt) duty-paid FOB loaded truck in US Gulf ports, but tonnage available from Korean mills has been limited over the past few weeks. The same is true for Korean ERW OCTG casing offers, which are in the $55.00-$57.00 cwt. ($1,213-$1,257/mt or $1,100-$1,140/nt) duty-paid FOB loaded truck in US Gulf ports range. Taiwanese ERW OCTG casing offers are in the same range, however, most orders have been placed closer to $57.00 cwt. duty-paid FOB loaded truck in US Gulf ports.
As for inventories from arriving imports, according to the most recent data from the Steel Import Monitoring and Analysis System (SIMA) the US imported 147,611 mt (preliminary census data) of OCTG in February, which reflects a 43 percent drop over January imports of 210,791 mt (census data). Line pipe imports dipped in February as well, falling 13 percent from 119,103 mt (census data) in January to 104,391 mt (preliminary census data) in February.