The next court date for the US import OCTG trade case appeal is several weeks out, but traders and domestic market players don’t think there will be too much impact in the immediate future. The primary petitioner in the case, Hyundai Hysco, has claimed that the DOC’s final determination was “unsupported by substantial record evidence and is otherwise not in accordance with the law” and, according to language within the complaint, they have asked the Court of International Trade (CIT) to “remand the case to the DOC with instructions to revise the final determination.” Traders point out this case will take well over a year to resolve, and feel Korean mills could be fighting an uphill battle.
In terms of current futures prices for unfinished J55 ERW OCTG casing, offers from Philippine mills continue to trend at approximately $47.50-$48.50 cwt. ($1,047-$1,068/mt or $950-$970/nt), range, DDP loaded truck in US Gulf coast ports, while prices from Taiwanese producers can be found in the approximate range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt), also DDP loaded truck in US Gulf coast ports. Korean offers for unfinished J55 ERW OCTG casing are also available in the approximate range of $980-$1,000 cwt. ($49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), DDP loaded truck in US Gulf coast ports.
As for the domestic market, prices have remained sideways since our last report a week ago, with spots for finished J55 ERW OCTG casing still available in the range of $59.00-$61.00 cwt. ($1,300-$1,344/mt or $1,180-$1,220/nt) ex-Midwest mill.