US domestic electric resistance welded (ERW) black plain end (BPE) A53 Grade A spot prices have moved higher again, as mills insist on collecting recently announced increases.
A number of US domestic standard pipe mills are currently pushing ERW standard pipe spot prices higher to reflect a late September-announced $2.00 cwt. ($44/mt or $40/nt) price increase on welded material. While not all mills have sent official letters to customers announcing this most recent increase, sources tell SteelOrbis that most are trying to collect higher prices on spot orders to reflect increases in the US domestic flat-rolled market.
So far, a portion of the pipe increases are being reflected in ERW BPE A53 Grade A spot prices which are up $1.00 cwt. ($22/mt or $20/nt) in the last two weeks into the range of $48.00-$49.00 cwt. ($1,058-$1,080/mt or $960-$980/nt) ex-Midwest mill, after a $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) increase two weeks ago (prior to the latest increase announcement)--although buyers with larger orders or established mill relationships are still able to book at prices under the range. But considering that US domestic hot rolled coil (HRC) spot prices are beginning to slip again, the uptrend in the domestic welded standard pipe market may be short-lived.
As for imports, after a major jump of about $2.50-$3.00 cwt. ($55-$66/mt or $50-$60/nt) in key import prices in the US two weeks ago, ERW BPE A53 Grade A prices from Korea, Dubai and India are neutral for the time being. Korean prices are still the most attractive in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports, while prices from India can be found between $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, and prices from Dubai are about $1.00 cwt. higher than Indian prices.
Import activity is mostly quiet at the moment because of growing uncertainty in the US domestic market and the fact that delivery dates for imported material are still largely in December. The current lack of import interest is especially severe in Houston, Texas, where inventories are taxed at year's end. But by mid- to late October, traders are expecting a jump in booking interest as import lead times move entirely into Q1 2012.