After a drop in API X-42 electric resistance welded (ERW) line pipe import offer prices to the US, activity has remained quiet. While some tonnages have certainly been booked, US buyers have been cautious with their purchases and traders have slowed speculative buys due to anticipation that import prices could come down slightly, although margins are already being squeezed at offshore mills. Additionally, futures booked today will arrive in the summer, a notoriously slower time for drilling activity. Nevertheless, Korea, Taiwan, and India are still offering line pipe to the US in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports, unchanged from last week.
In the US, prices are also stable, and API X-42 ERW line pipe spots are between $61.00-$62.00 cwt. ($1,345-$1,367/mt or $1,220-$1,240/nt) ex-mill, and are likely to remain steady throughout at least April. Although both hollow structural section (HSS) and standard pipe mills announced $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt) increases for May shipments last week, sources tell SteelOrbis line pipe mills aren't likely to follow suit, especially considering US hot rolled coil (HRC) spot prices haven't moved in about one month.