Sources close to SteelOrbis have said that four-week lead times for US domestic API X-42 electric resistance welded (ERW) line pipe are continuing to negatively impact market pricing. Buyers have indicated the average range of $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt) is still the most commonly reported, although deals $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) lower are being granted to buyers who are making larger purchases. Service center buyers in particular have said they are also monitoring the number of US rigs drilling for oil. Last Friday, Baker Hughes reported the number of rigs drilling for oil declined from 1,413 to 1,401. This number has been fluttering in the low 1,400s since early September and a welcome change from the collective 75 rig drop seen during the months of July and August. Although steady is better than declining, these stagnant numbers are doing little to improve market confidence.
Shifting focus to imports, offers for API X-42 ERW line pipe from Taiwan and Korea are still being reported in the range of $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports, steady from last week, although offers approximately $1.00 cwt. ($22/mt or $20/nt) lower are not entirely unheard of. Traders have said they are continuing to monitor offshore offers closely and are purchasing on an “as needed” basis. Although additional dips in pricing are not solidly expected, many have said they will continue to hold out until they are sure the market has bottomed.