State of US OCTG market based on perspective

Tuesday, 13 August 2019 20:35:50 (GMT+3)   |   San Diego

In recent weeks, most sources polled by SteelOrbis have described the domestic and import J55 ERW OCTG casing markets as bleak. Soft rig counts and unexciting order activity have placed significant downward pressure on pricing, and many have suspected that the market will remain sluggish for the rest of the year.

Others, however, have a more positive opinion. “The market is not all doom and gloom unless that’s all you want to see and make excuses to not call customers and work some deals,” a source said. “Our company has been successful in making some sales at prices above the range you have, but we may be the exception to the rule.”
Another source disagreed, adding that pricing is still all over the map, as sellers that need cash flow have been willing to negotiate deals to move inventory.

“To say that prices are all over the map is accurate – I don’t know what to believe,” another source said. “Geopolitical tension and the lack of a trade deal has everyone as conservative as they can be. The uncertainty has sidelined buying. I would say prices are not in any particular spot, they are at the ‘where do I need to be to get a purcahse order and that’s hurting the market.”

In terms of pricing, spot market prices for domestic and import (Korean) J55 ERW OCTG casing are being heard in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt), ex-mill and DDP loaded truck in US Gulf Coast ports, respectively.  As in previous weeks, deals below this range are available on a case-by-case basis.


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