Sources close to SteelOrbis have said that A-53 electric resistance welded (ERW) black plain end (BPE) Grade A standard pipe import offers from Korea to the US have dropped by approximately $3.00 cwt. ($66/mt or $60/nt) since our last report two weeks ago. This comes on the heels of a $1.00 cwt. ($22/mt or $20/nt) decline which took place during the last two weeks in August, and brings Korean standard pipe offers into the range of $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt) DDP loaded truck in US Gulf ports. Traders say this latest dip is due largely to the impact of China’s crisis on steel pricing throughout the Far East. More specifically, recent iron ore price drops (although iron ore prices have ticked up the last few days) are taking a toll on flat rolled prices in China and other countries such as Korea and Taiwan. As a result, Korean steel prices, including pipe, are under tremendous downward pressure, causing Korean mills to seemingly “bend over backward” on pricing in an attempt to garner orders. This is not to say that traders are chomping at the bit, though. Many have indicated that the steep drops in pricing over the past month are causing them to hold off on making purchases as they wait to see when and where the market might hit bottom.
Meanwhile, US domestic A-53 ERW BPE Grade A standard pipe spot prices have reflected no change since our last report two weeks ago. Spot market offers continue to be seen in the approximate range of $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt) range, ex-Midwest mill. Buyers say transactions in the upper end of that range seem to be the most prevalent. However, this may soon change given substantially lower import offers and US domestic flat rolled spot prices reversing course last week and now in the midst of a downtrend. It remains to be seen whether or not pipe mills can stave off pressure from weakening flat rolled prices Pipe order activity remains stable but cautious as buyers continue to keep close watch pricing trends within the global market.