SteelOrbis sources have said that US buyers are keeping close tabs on import API X-42 electric resistance welded (ERW) pricing. Although import offers from Korea and Taiwan have held neutral since last week, the vast price differential between domestic and import prices is causing quite a stir. Import offers from Korea are still being seen at $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports, whereas Taiwanese offers continue to come in at approximately $1.50 cwt. ($33/mt or $30/nt) above that. Sources close to SteelOrbis have said that more and more people are questioning whether Korean mills could soon face an anti-dumping suit--especially in light of the $3.50 cwt. ($77/mt or $70/nt) dip in pricing seen in the past month. Traders, though, have said that despite the increased speculation, there is no solid evidence that a suit is looming.
Shifting focus to the domestic market, the average spot prices for API X-42 ERW line pipe are still being reported in the range of $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt). This reflects no change since our last report a week ago. Service center sources have said that neither inquiries nor orders are “really cranking” at the current time. Although the number of US rigs drilling for oil increased by 11 week-on-week during the last week of August, this modest uptick is not a remarkable improvement from last week, when the number of rigs drilling for oil reached a 32-month low. So until a full rebound is visible, orders and inquiries are expected to remain moderate.