Demand has strengthened in the US energy pipe market, leading both US domestic and import energy pipe prices to increase.
As expected, US demand for oil country tubular goods casing (OCTG) has been strong so far in early Q2, giving way to higher prices on the spot market and increased import activity. US domestic spot prices for J55 electric resistance welded (ERW) OCTG casing now range from approximately $66.00-$68.00 cwt. ($1,455-$1,499/mt or $1,320-$1,360/nt) ex-mill-up $1.00 cwt. ($22/mt or $20/nt) since our last report two weeks ago.
Demand for domestic line pipe has been steady since our last report two weeks ago, but continues to weaker than demand for OCTG casing US domestically and offshore. Regardless, current domestic spot prices for API X42 ERW line pipe are in the $57.00-$58.00 cwt. ($1,257-$1,301/mt or $1,140-$1,180/nt) ex-Midwest mill range.
Driving firmer prices for energy pipe have been large increases in rig counts the past two weeks. After rising 18 rigs two weeks ago, rig counts jumped by 38 rigs last week.
Offshore bookings of OCTG casing from Taiwan and Korea have increased in the past few weeks even as prices are rising. Current J55 ERW OCTG casing offers from Taiwan and Korea range from $57.00-$58.00 cwt. ($1,257-$1,279/mt or $1,140-$1,160/nt) duty-paid FOB loaded truck in US Gulf ports-up $2.00 cwt. ($44/mt or $40/nt) on the low end, and $1.00 cwt. ($22/mt or $20/nt) on the high end, over previously reported levels two weeks ago.
Korean and Taiwanese line pipe offers have increased as well, and now range from $54.00-$55.00 cwt. ($1,190-$1,213/mt or $1,080-$1,100/nt) duty-paid FOB loaded truck in US Gulf ports for API X42 ERW line pipe. While official prices are up approximately $2.50 cwt. ($55/mt or $50/nt) since our last report two weeks ago, a few offers as low as $53.50 cwt. ($1,179/mt or $1,070/nt) duty-paid FOB loaded truck in US Gulf ports from Taiwan have been reported. Elsewhere, SteelOrbis has heard Indian offers of API X42 ERW line pipe in the $52.50-$53.50 cwt. ($1,157-$1,179/mt or $1,050-$1,070/nt) duty-paid FOB loaded truck in US Gulf ports.