Players within the US domestic and import line pipe markets will all agree that there aren’t a lot of positive notes going on in the near-to-mid future. Earlier this week, the US Department of Energy reported that each day, the US has been importing and producing approximately $1 million barrels of oil than it’s actually using; what’s more, is that storage tanks are fast approaching their capacity limits. If those levels are reached, they said, this could cause gas and oil prices to plunge. Some experts believe oil barrel prices could fall to the $20 range, they said, which will lead to additional, drastic cuts to the drilling industry. It’s also speculated that demand for oil will trend soft throughout the spring months, before the annual summertime increase due to drivers putting more miles on their cars. As such, those within the US domestic energy pipe markets are strapping on their seatbelts and bracing for a bumpy ride.
In terms of prices, the US spot market has held mostly steady since our last report a week ago, when prices for API-X42 ERW line pipe softened by approximately $3.00 cwt. ($66/mt or $60/nt) to $48-$49 cwt. ($1,058-$1,087/mt or $960-$980/nt) ex-Midwest mill; futures prices have also remained steady, with offers from Taiwanese and Vietnamese mills still trending at approximately $35-$37 cwt. ($772-$816/mt or $700-$740/nt), both DDP loaded truck in US Gulf coast ports. SteelOrbis sources continue to underscore that all of these ranges are flexible, since domestic and offshore mills are all hungry for orders.