Spot prices for US domestic API X-42 electric resistance welded (ERW) line pipe has remained neutral since our last report a week ago. SteelOrbis sources have said spot offers continue to be seen in the $57.00-$59.00 cwt. ($1,257-$1,300/mt or $1,140-$1,180/nt), range, ex-Midwest mill.While demand for line pipe is decent, as it has been for most of this year, the US’ rig count has been fluctuating over the last few weeks, with declines especially common as of late. According to a recent report by Baker Hughes, the US rig count declined by 12 to 1,953 for the week ending July 13, following a six-rig decline was reported for the week ending July 6. Rigs drilling for natural gas declined to 522, reflecting a 20rig drop. Baker Hughes notes this is the lowest number of natural gas drilling rigs seen since August 1999.
Import API X-42 ERW line pipe offers to the US out of Korea and Taiwan have also trended sideways since last week and continue to be found between $47.00-$48.00 cwt. ($1,037-1,059/mt or $940-$960/nt) DDP loaded truck in US Gulf ports. There are, however, other overseas offers available to the US, but pricing is reported as being much too high to be attractive. For now, Korean import volumes remain the largest from offshore. Traders continue to say the biggest challenge faced by imports is the long lead times—customers are wary of booking shipments that won’t arrive for several months because the market has experienced a slowdown over the last few months. . That being said, it’s not surprising that so many are wary when it comes to dealing in futures. If lead times were shorter, one trader said, the currently tepid interest in imports would be a different story.