When major US domestic oil country tubular goods (OCTG) producers announced price increases for as much as $7.50 cwt. ($165/mt or $150/nt) last November, many OCTG buyers were skeptical as to how successful the increases would be amid stiff import competition, domestic overcapacity for welded carbon products, as well as uncertainty in the US domestic flats market. However, at the start of the New Year, when many of the increases were set to take effect, domestic J55 electric resistance welded (ERW) oil country tubular goods casing spot prices are moving higher. It is still uncertain how much of mills' announced increases will be absorbed into the market, but spot prices have risen $1.00 cwt. ($22/mt or $20/nt) from late December to $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-mill. Sources indicate that spot prices could continue to rise throughout January, as domestic flat-rolled spot prices are trending upward and the US rig count, despite a slight one-rig drop last week, remains strong.
Import J55 ERW OCTG casing prices in the US will also soon rise; according to trader sources, Korean and Taiwanese mills will likely raise import J55 ERW OCTG casing offer prices to the US by at least $1.00 cwt. sooner rather than later. Until then, offer prices remain between $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) DDP loaded truck in US Gulf ports, with offer prices from Vietnam to the US still approximately $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) lower.