As predicted in our last report a week ago, Korean line pipe mills are trying to increase offer prices of API X-42 electric resistance welded (ERW) line pipe to the US. But while import demand has improved in the last couple weeks, the $30/mt price increase has not yet gone through, and sales prices in the US are still between $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports. Vietnam is also offering line pipe to the US but trader sources informed SteelOrbis that because Vietnamese prices are so similar to Korean, most import line pipe orders are being placed with Korean mills. "All things being equal, we stick with Korea," commented one trader in the South. Indian API X-42 ERW line pipe offers are about $0.75 cwt. ($17/mt or $15/nt) higher than Korean prices and therefore also getting only moderate attention.
In the US domestic market, an improving oil rig count is keeping domestic demand for API X-42 ERW line pipe decent. However, because of the existence of substantially lower-priced import offers and US domestic flats prices started to soften last week, line pipe mills aren't increasing prices on account of the steady activity, and are instead trying to keep spot market prices level in the range of $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex- mill, unchanged from last week.