US domestic OCTG prices show signs of softening

Wednesday, 10 April 2013 02:52:18 (GMT+3)   |   San Diego
The average spot transaction range for US domestic finished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing has begun to exhibit signs of softening. Average price ranges do exist, according to buyers, but those levels are extremely flexible--by as much as $3.00 cwt. ($66/mt or $60/nt)--based on the mill and size of each individual order. Currently, the most commonly reported range is down by about $1.00 cwt. ($22/mt or $20/nt) in the past week. Current spot pricing for US domestic finished J55 ERW OCTG casing is now approximately $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill.

Meanwhile, import prices for unfinished J55 ERW OCTG casing have held steady in the past week. This comes on the heels of several weeks of declines due to a failed attempt by certain mills to raise prices by as much as $70/mt in late January. Sales prices in the US for OCTG casing out of Taiwan, Turkey, Vietnam and India are still between $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 seven days. Trader sources report that the range is also quite flexible as offshore mills are open to negotiation in order to fill their books.


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