In the aftermath of a downtrend in the US domestic flat steel market, combined with a sideways-to-downtrend in December US scrap prices, sources tell SteelOrbis that US domestic line pipe prices are vulnerable to softening. While the general spot price range for API X-52 line pipe is relatively stable at $64-$67 cwt. ($1,411-$1,477/mt or $1,280-$1,340/nt) ex-mill, deals at the service center level are still prevalent, and could carry over to mill pricing in as the end of the year nears.
Another factor putting pressure on US domestic line pipe prices is imports. This week, API X-52 line pipe prices from Mexico have dipped into a range of $62.50-$65 cwt. ($1,378-$1,433/mt or $1,250-$1,300/nt), FOB Texas, reflecting a widening of $2.50 cwt. ($55/mt or $50/nt) on the bottom end. While that price includes the 25 percent Section 232 tariff, sources say that if Mexico is excluded from the tariff before the new USMCA trade deal is ratified, line pipe offer prices will not automatically drop by 25 percent. A moderate $1.25-$2.50 cwt. ($28-$55/mt or $25-$50/nt) decline in prices is reportedly more likely.