The situation surrounding US import API X52 line pipe from South Korea remains uncertain, as the Trump administration can’t seem to make up its mind about tariffs and quotas.
Last week, the Trump administration announced that South Korea would be added to the Section 232 exemption list, with the stipulation that the exemption would expire on May 1. Earlier this week, it was announced that Korea would receive a long-term exemption, but would need to decrease steel exports to the US by 30 percent.
US market players say they’re still trying to make sense of the latest announcement. “There are still too many questions which prevent them from making any competitive offers because there is still much confusion on how quotas will be divided,” a source said.
If new pricing from Korean pipe mills is consistent with levels prior to the Section 232 announcement, it’s believed that the sales price for Korean API X-52 in the US domestic market will be approximately $45 cwt. ($992/mt or $900/nt) DDP loaded truck in US Gulf ports.
Current US pricing for that same product is now at $60-$65 cwt. ($1,323-$1,433/mt or $1,200-$1,300/nt), ex-mill.
Pricing from Mexican steelmakers for this same product in the US is still holding at approximately $60 cwt. ($1,323/mt or $1,200/nt), FOB Houston.
During a television interview that aired on Wednesday, US Trade Representative Robert Lighthizer said he was hopeful a new North American Free Trade Agreement (NAFTA) would happen in the near future. “If there’s a real effort made to try to close out and to compromise and do some of the things we all know we should do, I’m optimistic we can get something done in principle in the next little bit,” Lighthizer said.
As such, there continues to be uncertainty with regard to what types of tariffs or quotas, if any, will be levied upon Mexican pipe makers.