A decline in line pipe import offer prices to the US has been inevitable, according to SteelOrbis sources, as US buyers have been extremely judicious with any offshore purchases. Volumes booked offshore have been substantially less than in just a few months ago, and with demand in the Far East also lackluster, Korean mills have dropped API X-42 electric resistance welded (ERW) line pipe offer prices to the US by about $1.00 cwt. ($22/mt or $20/nt) since last week. Consequently, sales prices to the US are now between $46.00-$47.00 cwt. ($1,014-$1,037/mt or $920-$940/nt) DDP loaded truck in US Gulf ports. It's unlikely that prices have bottomed just yet, and prices may decline further as the month progresses.
US domestic API X-42 ERW line pipe offer prices to the US have also fallen by approximately $1.00 cwt. and are now $60.00-$61.00 cwt. ($1,323-$1,345/mt or $1,200-$1,220/nt) ex-Midwest mill. One buyer in the South explained that with flat rolled prices falling so significantly throughout May, line pipe buyers have been putting increased pressure on domestic mills to lower prices as well. With both raw material and flat rolled prices still trending strongly downward, such pressure isn't likely to let up anytime soon.