Spot market prices within the US domestic energy pipe markets are “steady but soft,” sources note, adding that while customers are calling in for inquiries, few, if any of those calls, are turning into orders.
“None of this should be surprising,” another source said, adding that the overall rig count “is nothing short of depressing.”
On Friday, Baker Hughes reported that for the week ending July 3, the US oil rig count lost three more rigs. The current oil rig count was clocked at 185, which reflects a 603-rig drop from the same reporting period last year. The reflects a 69.32% drop in the year-over-year oil rig count.
And while oil prices hit a four-month high on Thursday, July 2, due to a slight rebound in demand, prices were hardly exciting. For example, Brent crude was recorded at roughly $40 +/- per barrel, whereas WTI was hovering at $37 +/-. Industry analysts have not been shy in stating that a renewed coronavirus resurgence, which is already happening in many parts of the US, will have a negative impact on both oil demand and pricing.
In terms of current energy pipe prices, SteelOrbis sources have said that while the below ranges represent “the bulk of quotes,” the true price “is based entirely on how badly the seller needs cash flow.”
Spot market prices for stock API-X52 line pipe are being heard at approximately $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), ex-mill. Mexican material is heard at approximately $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt), FOB Texas.
Stock domestic J55 ERW OCTG casing is being sold in the range of $43.00- $45.00 cwt. ($948-$992/mt or $860-$900/nt), ex-mill. Korean material is also being offered at approximately $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt), DDP loaded truck in US Gulf ports. But again, few inquiries are turning into orders.