US domestic line pipe prices surge after Section 232 announcement

Friday, 09 March 2018 22:27:29 (GMT+3)   |   San Diego
       

The US domestic and import API X-52 ERW line pipe markets are waiting for the dust to settle from yesterday’s Section 232 tariff announcements, but sources close to SteelOrbis say that while demand has remained the same, prices are up nearly $10.00 cwt ($222/mt or $200/nt) across the board.

US domestic line pipe pricing is currently being heard at $60-$65 cwt. ($1323-$1433/mt or $1200-$1300/nt), ex-mill, sources note, adding a widespread belief that prices will continue to climb, due to the expectation that US HRC pricing has not yet reached its ceiling.

Line pipe prices from Mexico are now hovering at $60 cwt. ($1323/mt or $1200/nt), FOB Houston, but there is widespread speculation that those prices will also adjust upward.

“Lead times are similar to what the domestic mills are offering, so we think there’s going to be a mad rush to book and lock in orders from Mexico based on the pricing,” a source said, adding that he questions whether Mexican mills will also raise prices, “because they can.”

Mills from other countries, another source said, said they are still trying to sort out their pricing, especially since Donald Trump said that other countries may soon be added to the exemptions list.

“I have some bids I need to put together today,” another source said, “but everything I’m putting out will indicate that the pricing may need to be revised and renegotiated, with the best case being that prices will not need to include the tariff.”


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