US import line pipe prices decline

Korean line pipe mills have had trouble filling up order books in the last couple weeks, as US buyers are reluctant to book orders offshore. As a result, Korean API X-42 electric resistance welded (ERW) line pipe offer prices to the US have fallen by about $0.50 cwt. ($11/mt or $10/nt) since last week and are now in the range of $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports. Indian line pipe offer prices are lower--by about $1.00 cwt. ($22/mt or $20/nt)--but that hasn't been enough to deter typical US import line pipe buyers from sticking with Korea. Sources tell SteelOrbis that there are still concerns over quality regarding Indian line pipe and how well it can be used in US oil drilling, which has limited the amount of orders being placed with Indian mills.

As for the US domestic market, API X-42 ERW line pipe spot prices are unchanged in the last week, and can still be found between $62.00-$63.00 cwt. ($1,367-$1,389/mt or $1,240-$1,260/nt) ex- mill. Domestic line pipe demand continues to be steady and while drilling projects are keeping most mills and distributors busy, availability is abundant--US domestic or on-the-ground imports still available--thus preventing mills from increasing prices.