On Friday, the National Association of Steel Pipe Distributors (NASPD) held its 45th annual convention in San Diego, California. And while current demand and pricing within the J55 ERW OCTG casing and API-X52 line pipe markets is still being impacted by global political happenings, oil prices and sluggish rig counts, many within the market say they have their eyes on the upcoming presidential election.
“On the left, you have two candidates that who, if elected, would ban fracking,” said Pipe Logix owner Kurt Minnich during a conference presentation. “One on the right, we have the most friendly candidate/ politician we’ve had in office in a long time in terms of trying to get [drilling projects] started back up.”
Not surprisingly, he added, there are a lot of people who are waiting to decide what to do with their business in the exploration & production (E&P) sector until after the November election.
Additionally, concerns about the impact of the Wuhan coronavirus, and the economic effects it will have on China and the international energy markets, continue to persist, as Chinese oil demand has fallen by 20% since the start of the outbreak. Examples of downstream effects have been reflected in falling oil prices. For example, this week, the price of West Texas Intermediate crude fell to $48.61, which reflects it’s lowest price point in more than a year.
In terms of week-over-week pricing within the energy pipe markets, price points for US domestic J55 ERW casing continue to hold in the range of $49-$54 cwt. ($1,080-$1,191/mt or $980-$1,080/nt), ex-mill, whereas the most commonly reported spot price transaction range for US domestic API X-52 line pipe prices has shifted downward, from $49.50-$52.00 cwt. ($1,091-$1,146/mt or $990-$1,040/nt), ex-mill, to $48.25-$51.00 cwt. ($1,064-$1,124/mt or $965-$1,020/nt), ex-mill. As in previous weeks, deals on domestic material are available based on tonnage.
Looking across the US Southern border, API X52 pipe from Mexico, sources note, is being offered at $45.50-$47.50 cwt. ($1,003-$1,047/mt or $910-$950/nt), FOB Texas.