Offshore API X-42 line pipe mills are trying to reconcile how to entice order placement from US traders in a marketplace where capacity outweighs demand. Consequently, import CFR offer prices for API X-42 electric resistance welded (ERW) line pipe from Turkey, Korea, Taiwan and Vietnam to the US have come down by $10/mt in the past week. This comes on the heels of a $20/mt decrease during the last week of March. Demand for line pipe futures is weak, according to trader sources, and very few are placing orders for speculative tons. The drop in CFR prices puts import sales prices in the US from all four regions in line with official offer prices in the range of $43.50-$44.50 cwt. ($959-981/mt or $870-$890/nt). As usual, deals slightly below that range are still available for buyers looking to book larger tonnages.
The US domestic market for API X-42 ERW line pipe, though, has trended neutral in the past week. The most commonly reported spot price range is between $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-mill, unchanged in the past seven days. The biggest challenge for the domestic market is still unbalanced supply and demand levels as availability of line pipe continues to outpace demand. Lead times remain at about four weeks, and industry insiders say this allows buyers to get deals as much as $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below the average spot range for larger orders.