As in previous weeks, activity and sentiment within the US energy pipe markets remains largely depressed, as lagging rig counts and lackluster oil demand continue to weigh on the market.
For example, the US rotary rig count may be rising, but drilling activity is still down across the board from the same reporting period last year. As of October 9, Baker Hughes reports that the number of rigs drilling for oil is 193, against 189 a week ago. The current oil rig count is 519 rigs less than it was during the same reporting period last year.
Also of note is that the airline industry doesn’t expect a full recovery until 2024, which is weighing on demand for oil, and thus demand for energy pipe. For now, however, prices are still stable but flexible.
As with last week, spot market prices for US domestic API-X52 line pipe are still being heard at approximately $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt),ex-mill, whereas domestic J55 ERW OCTG casing offers remain at $44-$45 cwt ($970-$992/mt or $880-$900/nt), ex-mill. Orders and inquiries, sources note, remain scant.