Even in the face of major decreases in scrap and flat rolled prices, US domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe spot prices had been holding largely stable. While demand for standard pipe isn't particularly strong, it has been "pleasantly steady," according to SteelOrbis sources, and while import offers are always plentiful, the spread between US domestic spots and import offer prices had been narrow enough in May that some buyers chose to stick with domestic pipe rather than risk the long lead times associated with an offshore order. However, domestic standard pipe demand likely is not strong enough to withstand another expected substantial drop in domestic scrap prices next month and the extreme downward momentum in the US flats market. Although US pipe spot prices are unchanged in the last two weeks at about $47.00-$49.00 cwt. ($1,036-$1,080/mt or $940-$980/nt) ex-mill, the bulk of transactions are now taking place at the lower end of the range.
As for import A-53 ERW BPE Grade A standard pipe offer prices to the US, Korean prices are unchanged this week at $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports, following a $1.00 cwt. ($22/mt or $20/nt) decline two weeks ago. This week's stable trend is also expected to be short-lived, however, and trader sources don't believe that Korean prices have hit bottom yet and another price drop could come by month's end.