Buyers and sellers of US domestic API X-42 electric resistance welded (ERW) line pipe are continuing to keep a close eye on domestic prices for hot rolled coil (HRC), wondering when and if declining HRC prices will spill over to impact the line pipe market. For now, the average domestic spot range for API X-42 line pipe continues to be seen between $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt), once again steady over the past week. At the same time, though, short, four-week lead times continue to have some service centers offering deals $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) below current mill prices to buyers who commit to purchasing larger tonnages. This, compounded by falling prices for HRC, is leading pipe buyers to be especially cautious in terms of making purchases. For now, though, activity remains steady over what has been reported in recent weeks.
Looking offshore, import offers for API X-42 ERW line pipe from Taiwan and Korea have shifted slightly downward since our last report a week ago. Korean prices have declined by $0.50 cwt. ($11/mt or $10/nt) whereas Taiwanese offers have declined by $1.00 cwt. ($22/mt or $20/nt), and prices for line pipe are now approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) and $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt), respectively. The recent decline has renewed traders’ reluctance to buy more than they need, unsure that this latest drop indicates a true bottom.