Inquiries within the US domestic J55 electric resistance welded (ERW) OCTG casing market have remained on par with recent weeks, but order activity has lost steam. The marketplace is still quite competitive, according to industry insiders, and service centers and distributors are approaching every inquiry aggressively. Although the average spot price range for finished J55 ERW OCTG casing is unchanged in the past week and still between $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill, deals as much as $3.00 cwt. ($66/mt or $60/nt) below that range are easily attainable for buyers who are interested in placing larger orders.
As for imports, traders remain cautious when it comes to booking speculative tons. Offshore mills’ asking prices for unfinished J55 ERW OCTG casing went up by as much as $60-$70/mt in late January due to increased raw materials costs in the Far East, but reversed in early April due to traders’ weak interest in booking at higher price points. Demand did not support the previous increases, and has not shown much improvement. Therefore, although import offer prices have since declined, customers are not willing to book significant tons. As a result, although sales prices in the US for unfinished J55 ERW OCTG casing from Taiwan, Turkey, India and Vietnam continue to be in the approximate range of $45.75-$46.25 cwt. ($1,009/mt-$1,020/mt or $915-$925/nt) DDP loaded truck in US Gulf ports, unchanged in the past week, deals are available to those interested in booking larger orders.