US import OCTG price uptrend faces resistance

Wednesday, 08 October 2014 23:18:34 (GMT+3)   |   San Diego
Last week, futures prices for US import J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing from Korean producers ticked up by about $1.00 cwt. ($22/mt or $20/nt), but offers have since shown signs of leveling.  Sources close to SteelOrbis say that some US buyers have started to “push back” a little, although offers have held in the approximate range of $53.00-$54.00 cwt. ($1,168-$1,187/mt or $1,060-$1,080/nt) DDP loaded truck in US Gulf coast ports. Taiwanese offers have also remained neutral, trending approximately $2.00 cwt. ($44/mt or $40/nt) below Korean prices.  Offers from the Philippines, however, have crept up by about $2.00 cwt. ($44/mt or $40/nt) since our last report a week ago, bringing prices to the $47.50-$48.50 cwt. ($1,047-$1,068/mt or $950-$970/nt), range, DDP loaded truck in US Gulf coast ports, although trader sources say interest in J55 ERW OCTG casing from that country is trending weak at best due to quality.

In terms of the domestic market, spot prices are also unchanged and continue to trend in the approximate range of $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill. “The market is steady, according to one Midwest-based buyer, “and things just seem to be trucking along.”


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