No change has been reported on spot pricing in the US domestic API X-42 electric resistance welded (ERW) line pipe market since last week. Last week’s reported range of $57.00-$59.00 cwt. ($1,257-$1,300/mt or $1,140-$1,180/nt) ex-Midwest mill, continues to hold firm at levels first reported in late June,. The upside though, is US oil rig counts are still showing strength. According to the most recent report by Baker Hughes, last week’s reported 1,429 rigs drilling for oil indicates a week-on-week increase of 13. This could be a good sign for API X-42, say sources close to SteelOrbis, especially since this reverses the previously reported downward trend seen during July.
Shifting focus offshore, API X-42 ERW line pipe offers to the US out of Korea and Taiwan have remained neutral and continue to be reported at $47.00-$48.00 cwt. ($1,037-1,059/mt or $940-$960/nt) DDP loaded truck in US Gulf ports. The biggest challenge for imports, say traders, continues to be lead times that place arrival just before the end of 2012. At current, though, Korea continues to be the most significant offshore importer of API X-42 ERW line pipe to the US. According to the most recent data provided by the Steel Import Monitoring Association, the largest importer offshore importer for line pipe for the months of June and July was Korea, at 35,282 (preliminary census data) and 68,282mt (license data), respectively.