Select deal-making on the back of falling raw material costs has pushed down US domestic OCTG spot prices. US flat rolled prices have been softening rapidly the last few weeks, and further declines are anticipated over the next couple weeks. Additionally, scrap prices have been soft for the past couple months and are poised to fall as much as $20-$30/lt in June. As a result, buyers of J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing have been pressuring their suppliers to lower prices in tandem, and with no shortage of availability in the market, some mills have succumbed to downward pressure, and spot prices are down about $1.00 cwt. ($22/mt or $20/nt) from last week to $65.00-$66.00 cwt. ($1,433-$1,455/mt or $1,300-$1,320/nt) ex-Midwest mill; most deals for lower are for especially large volume orders.
Import prices have also come down slightly in the last week, but could deteriorate further in June. For the most part, Korean, Taiwanese and Indian prices in the US remain between $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) DDP loaded truck in US Gulf ports, but offers are beginning to trend toward the lower end of the range. Competition from so many offshore offers is driving the price decline, but a reluctance from US buyers to place an offshore order that wouldn't arrive until the fourth quarter is also contributing to the current slowdown.