Yesterday, the US Department of Commerce published its interim rule for the submission of exclusions requests for Section 232 tariffs, that were announced by the White House earlier this month. Sources close to SteelOrbis said that many offshore sources of US import J55 ERW OCCTG casing are not currently quoting, as they are waiting to see if they can get added to the exemption list.
“Everyone is still trying to figure this out,” a source said. “But at this rate, with the speed that US prices are rising, it seems like offshore will still be cheaper than domestic, with the only difference being that everything is more expensive.”
Another source agrees. “Pricing is irrelevant right now, if people need something they’re buying it,” he said.
In terms of current offshore pricing for US import J55 ERW OCTG casing from Taiwan, that remains uncertain. The most recently heard pricing just prior to the Section 232 tariff announcement was at $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt), DDP loaded truck in US Gulf coast ports.
With the 25 percent tariff, that pricing would raise to $50.00-$51.25 ($1102-$1130/mt or $1000-$1025), DDP loaded truck in US Gulf coast ports.