After appearing to have reached bottom just two weeks ago, US domestic standard pipe spot prices are beginning to rise in line with announced mill increases.
In the first few days of September, US domestic electric resistance welded (ERW) black plain end (BPE) A53 Grade A standard pipe spot prices fell to about $46.00 cwt. ($1,014/mt or $920/nt) ex-Midwest mill, with orders for larger orders being placed for about $1.00 cwt. ($22/mt or $20/nt) less--reflecting a decrease of about $1.50 cwt. ($33/mt or $30/nt) from spot prices in late August. However, in the last week or so, the downtrend in domestic standard pipe spot prices has reversed, as mills are attempting to strictly enforce mid-August announced price increases of about $4.00 cwt. ($88/mt or $80/nt).
While buyers have not accepted the full $4.00 cwt. increase, a portion of the increase is being reflected in domestic spot prices for ERW BPE A53 Grade A, which currently range from $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill. Spot prices fell about $0.50 cwt. ($11/mt or $10/nt) after our last report two weeks ago, but have since increased about $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) in the last week.
Sources tell SteelOrbis that pipe mills are directly citing higher domestic hot rolled coil (HRC) spot prices for the rising standard pipe spot prices, which have increased about $3.00 cwt. ($66/mt or $60/nt) since mid-August, as standard pipe demand is not strong enough for the increases to stand alone without the support of higher raw material and substrate costs. But at least for the time being, with the US domestic flat-rolled market still trending upward, standard pipe spot prices are likely to follow suit.
Offshore, common import standard pipe sources in the US are following the US domestic standard pipe market and have already raised their offer prices to the US for December/January delivery. Korean ERW BPE A53 Grade A standard pipe prices are now $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports, a $2.50 cwt. ($55/mt or $50/nt) increase in the last two weeks. India has increased its offer prices to the US more substantially--by $3.00 cwt.--and is now offering standard pipe to the US in the range of $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports.
Meanwhile, standard pipe offers from Dubai range from $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) DDP loaded truck in US Gulf ports for ERW BPE Grade A, and $53.00-$54.00 cwt. ($1,168-$1,190/mt or $1,060-$1,080/nt) DDP loaded truck in US Gulf ports for ERW GPE Grade A.