SteelOrbis has learned that the offer price range for US Import API X-52 line pipe from Mexico has firmed since our last report a month ago. Today, traders are offering US import API-X52 line pipe from Mexico at approximately $110-$120 cwt. ($2,425-$2,646/mt or $2,200-$2,400/nt), FOB Texas, against a range of $107-$108 cwt. ($2,359-$2,381/mt or $2,140-$2,160/mt), FOB Texas, in late July.
Prices for Korean material, however, has remained steady. As such, traders are still offering US import API-X52 line pipe from Korea at approximately $85-$90 cwt. ($1,874-$1,984/mt or $1,700-$1,800/nt), DDP loaded truck in US Gulf coast ports.
In contrast, US domestic API-X52 line pipe is now being offered at approximately $125-$135 cwt. ($2,756-$2,976/mt or $2,500-$2,700/nt) FOB mill. Sources close to SteelOrbis have said that the price spread between domestic and imported material, has many buyers looking offshore.
“Things are definitely picking up and we’ve been busy,” a source said, noting that still-improving rig count numbers have helped spur demand. For example, Baker Hughes reported that for the week of August 27, the U.S. rotary rig count was up 5 to 508. The current rig count is 254 rigs (100.0%) higher than last year.
The number of rotary rigs drilling for oil is up 5 to 410. There are 230 more rigs targeting oil than last year.
Service center sources, however, say they’re also keeping a close eye on what’s happening with US domestic HRC prices. “We’re monitoring that closely because if there’s a major shift in hot rolled prices, and that market starts to come down, that will drag everything else down along with it.”