On account of increases in scrap and flat-rolled steel prices, Korean mills have increased API X-42 electrical resistance welded (ERW) line pipe offer prices to the US. While the increase has not yet made its way into sales prices in the US, which remain between $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, Korean prices in the US will likely rise by at least $1.00 cwt. ($22/mt or $20/nt) in the next couple weeks. Meanwhile, Indian offer prices to the US are also unchanged from last week and remain within a range similar to Korean prices. The similarity between Indian and Korean prices in the US is essentially keeping Indian mills out of the US market, as most US buyers prefer to stick with Korea for their import line pipe needs. However, trader sources tell SteelOrbis that with many Indian mills that produce both line and standard pipe now unable to export standard pipe to the US due to a recent anti-dumping and countervailing duty investigation, Indian mills may begin to focus more on line pipe exports to the US, and make prices more competitive along the way.
As for the US domestic market, consecutive weekly declines in US rig counts since early November is keeping buyers extremely cautious and activity low. Nonetheless, API X-42 ERW line pipe spot prices are holding steady between $62.00-$63.00 cwt. ($1,367-$1,389/mt or $1,240-$1,260/nt) ex- mill, unchanged from last week.