US domestic standard pipe prices temporarily stable

Wednesday, 20 July 2011 01:49:18 (GMT+3)   |  
The US domestic standard pipe market has been quiet in the last couple weeks, with little price movement and meager activity.

After dropping $2.00 cwt. ($44/mt or $40/nt) two weeks ago, US domestic electric resistance welded (ERW) black plain end (BPE) A53 standard pipe spot prices haven't moved from the current range of $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) ex-Midwest mill. After a swift domestic price slide in May and June, pipe mills are attempting to hold tight to current spot prices. Nonetheless, sources indicate that mills have not been opposed to making deals for larger buys in order to pad order books.

Even with some discounts available, domestic pipe buyer inventories remain largely balanced and so few--if any-- are rushing to place orders. Additionally, with purchasing activity consistently slow, one Gulf area distributor told SteelOrbis that many core sizes are readily available from stock at a few mills, and that if "you can stretch existing inventory, you could probably get a lower price in the next week or two."

Furthermore, with the US domestic flat-rolled market still declining--albeit at a slower rate than in May and June--the domestic standard pipe prices will also likely soften further if US domestic hot rolled coil (HRC) spot prices slip below $35.00-$36.00 cwt. (772-$794/mt or $700-$720/nt) ex-Midwest mill, which is expected as soon as later this week.

Offshore, import standard pipe prices to the US haven't shown much movement either. Korean and Indian ERW BPE A53 Grade A standard pipe sales prices in the US are still in the range of $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) DDP loaded truck in US Gulf ports--reflecting no change from two weeks ago. Traders indicate that there have been a few bookings in the last few weeks, particularly of Indian standard pipe; but amid low US demand, traders are only able to book smaller-quantity orders for the time being.  

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