Spot market prices within the US domestic energy pipe markets are consistent with levels heard last week, although sources close to SteelOrbis have described the market as being “about as ugly as they can get,” as many service centers are selling stock at below replacement cost.
“There is no demand right now. There is no heartbeat. The market is dead,” a source said. “The entire market is static. The current sell price of material is lower than replacement costs are, and nothing is going to start moving again until that flips. People are selling at whatever they can sell at right now just to get cash flow.”
As with last week, spot market prices for stock API-X52 line pipe is being still heard at approximately $42.50 cwt. ($937/mt or $850/nt), ex-mill, although some sources have reported that deals are readily available. Import material from Mexico is still being heard at approximately $45.00 cwt. ($992/mt or $900/nt), FOB Texas.
Also, as with last week, sources have once again confirmed that stock domestic J55 ERW OCTG casing is still being sold at or slightly below $45.00 cwt. ($992/mt or $900/nt), ex-mill, although service center pricing “is based on how badly the seller needs cash flow.”
Korean material is also being offered at approximately $45.00 cwt. ($992/mt or $900/nt), DDP loaded truck in US Gulf ports, however, some sources have said they’ve received offers below that price point.