US domestic standard pipe prices stable, but activity is waning

Thursday, 01 March 2012 01:42:52 (GMT+3)   |  

Following a mild spot price increase and steady activity a few weeks ago, US domestic welded standard pipe activity has slowed. Although there are pockets of strength, and sources tell SteelOrbis that demand has been moderately improving, there is apprehension that domestic A-53 electric resistance welded (ERW) black plain end (BPE) Grade A spot prices can stave off downward pressure from softening domestic flat steel spot prices. For the time being, though, A-53 ERW BPE Grade A spot prices are steady in the range of $50.00-$51.00 cwt. ($1,102-$1,124/mt or $1,000-$1,020/nt) ex-Midwest mill.

Import activity in the US has been decent, but quieter compared to mid-February due to uncertainty within the US domestic market. Still, Korean and Taiwanese mills are in no hurry to lower prices and continue to offer A-53 ERW BPE Grade A standard pipe to the US in the range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports. Meanwhile, Turkish mills--which are offering standard pipe at prices about $0.50 cwt. ($11/mt or $10/nt) higher than Taiwanese and Korean--may actually increase prices. Scrap prices in Turkey have increased in recent weeks and Turkish mills have already increased flat rolled prices in response.


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