Both import offers prices to the US and US domestic spot prices for electric resistance welded (ERW) oil country tubular goods (OCTG) casing are rising on the heels of higher input costs.
After increasing about $0.75 cwt. ($17/mt or $15/nt) in late August, notable offshore OCTG casing mills have once again increased their offer prices to the US and Korean J55 ERW OCTG casing prices are now $54.00-$55.00 cwt. ($1,190-$1,213/mt or $1,080-$1,100/nt) DDP loaded truck in US Gulf ports--a $1.25 cwt. ($28/mt or $25/nt) increase from last week.
Meanwhile, Vietnamese mills continue to offer OCTG casing to the US at prices just under Korean offer prices, as they compete for market share in the US. However, although Vietnamese offer prices are about $53.50-$54.50 cwt. ($1,179-$1,202/mt or $1,070-$1,090/nt) DDP loaded truck in US Gulf ports--up about $2.00 cwt. ($44/mt or $40/nt) since late August--most US buyers are turning to Korea to service their import OCTG casing needs, as the quality of Korean OCTG has long been hailed for its high quality in the US. Turkey is also active in the US market, and is offering J55 ERW OCTG casing in the range of $53.75-$54.75 cwt. ($1,185-$1,207/mt or $1,075-$1,095/nt) DDP loaded truck in US Gulf ports--up about $2.50 cwt. ($55/mt or $50/nt) in just the last two weeks.
As for the US domestic OCTG market, with domestic hot rolled coil (HRC) spot prices up about $3.00 cwt. ($66/mt or $60/nt) in the last month (and up $1.00 cwt. in the last week), pipe mills have been trying to raise ERW OCTG casing prices by at least $3.00-$4.00 cwt. ($66-$88/mt or $60-$80/nt) as well, a task industry insiders tell SteelOrbis will likely be successful, at least in part. But for now, J55 ERW OCTG casing spot prices have stayed neutral from last week and can still be found in the range of $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-Midwest mill.