Many, if not most of the US domestic energy pipe players traveled to Houston, Texas this week to attend the 2015 Offshore Technology Conference; although many said they were happy to rub-elbows with likeminded industry insiders, others say it did little to spark optimism for US domestic and import API X-42 line pipe sales.
“The market is still flat. Sure, line pipe is doing a little better than OCTG casing but that’s because there is always a little bit of a lag,” according to one Texas-based source. The overall story hasn’t really changed in the past seven days; rig counts are down, oil exploration efforts are down and supply continues to outpace demand.
In terms of prices, offers continue to trend “all over the map” in what continues to be a buyers’ market. The most commonly reported ex-Midwest mill spot price range for US domestic API X-42 ERW line pipe has “mostly held” at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), ex-Midwest mill; while futures offers from Vietnamese and Taiwanese prices continue to hold at about $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt), DDP loaded truck in US Gulf coast ports; as with last week, though “everything is flexible based on tonnage.”