SteelOrbis has learned that spot market prices for US domestic A53 Grade A standard pipe are still trending at approximately $138 cwt. ($3,042/mt or $2,760/nt), FOB mill. This week's pricing is consistent with prices heard during the first week of April.
"We all see what the CRU has been doing and we all know that HRC prices are coming down," a source said. "If you look at that market, it appears as if the bloom has officially come off of the rose."
Others feel that it's just a matter of time before downtrending HRC prices begin to place downward pressure on standard pipe prices.
"I don't think the pipe mills are in any rush to reduce their pricing, but if HRC keeps trending down the way it has been, it's bound to happen," a second source said. "If the CRU drops [HRC prices] again tomorrow I think that could scare a lot of [tube] buyers into a position where they're not going to buy anything unless they absolutely need it."