US domestic spot pricing for API X-42 electric resistance welded (ERW) line pipe has seen a $2.00/cwt. ($44/mt or $40/nt) downtick in the last week. US domestic spots are now between $57.00-$59.00 cwt. ($1,257-$1,300/mt or $1,140-$1,180/nt), ex-Midwest mill, although most activity is taking place toward the lower end of the range. This dip in pricing came as no surprise. Industry sources tell SteelOrbis that domestic spot prices were expected to dip as a result of the traditional summer slowdown in buying trends. Volume is down but continues to remain steady, and there is no shortage in capacity. Even so, mills are fighting more aggressively for orders and “if you’re looking for volume, there are deals to be had,” explained one Midwest service center buyer.
Meanwhile, import API X-42 ERW line pipe offers to the US out of Korea and Taiwan are unchanged since last week at $47.00-$48.00 cwt. ($1,037-1,059/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, although transactions are now more frequently reported as taking place toward the lower end of that range. Lead times for offshore orders are still four to five months out, leaving many traders reluctant to take possession of inventory during a time of year typically reserved for depletion of stock, especially as demand for line pipe imports remains sporadic-at-best.