With most US domestic energy pipe production tied up in contracts and projects, spot market availability is minimal, keeping domestic spot prices largely intact.
Despite continual downward pressure on domestic electric resistance welded (ERW) pipe prices from softening domestic hot rolled coil (HRC) spot prices, which have fallen another $1.00 cwt. ($22/mt or $20/nt) in the last week into the $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill range, domestic spot prices for API X42 ERW line pipe and J55 ERW oil country tubular goods (OCTG) casing have remained largely unchanged in the last couple months. Strong drilling activity is the main source of the stability as rotary rig counts continue to register week-on-week increases, rising by 18 rigs just last week to 1,905.
In the last week, spot prices for J55 ERW OCTG casing haven't moved, and still range from $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill. However, API X42 ERW line pipe spot prices have slipped about $0.50 cwt. ($11/mt or $10/nt) since last week to $65.50-$66.50 cwt. ($1,444-$1,466/mt or $1,310-$1,330/nt)on non-project-related weakness. Further softening may be possible in August, but with spot availability limited, any additional declines in line pipe spot prices aren't likely to be significant.
Import prices are stable as well, showing no change from last week. Korean and Taiwanese J55 ERW OCTG casing import offer prices still range from $53.50-$54.50 cwt. ($1,179-$1,202/mt or $1,070-$1,090/nt) DDP loaded truck in US Gulf ports and Korean and Taiwanese offer prices of API X42 ERW line pipe are unchanged as well at $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports. Although there has been no movement in pricing, traders tell SteelOrbis that import activity has shown a slight uptick in the last week after a slow start to July.