US domestic line pipe spot prices increase slightly

US domestic demand for line pipe continues to be firm on account of a steadily increasing rig count, but import competition is impeding domestic mills' ability to raise prices as much as increases in flat-rolled steel warrant, according to one Midwest buyer. Nonetheless, mills have been able to push up US domestic API X-42 electric resistance welded (ERW) line pipe spot prices slightly since last week, by $0.50 cwt. ($11/mt or $10/nt), to $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex- mill.

As for imports, ordering activity has been consistent in the last week. Trader  sources tell SteelOrbis that because there has been some mild pick-up in activity and US domestic demand remains stable, last-heard offer prices are likely no longer available. The latest Korean API X-42 ERW line pipe offer prices to the US in the range of $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports had garnered decent orders from US so Korean mills may try for an increase in the next week or so; but if activity wanes, Korean mills will once again drop their prices.