Declining scrap prices and weak demand have lent themselves to another decline in import offer prices for unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing to the US. CFR offer prices have decreased by an additional $5/mt since our last report a week ago. Asian mills attempted to raise prices between $60-$70/mt during late January, but revised those numbers quickly after Indian mills offered unfinished J55 ERW OCTG casing in mid-March at $46.00-$46.50 ($1,014-$1,025/mt or $920-$930/nt) DDP loaded truck in US Gulf ports. Last week, Taiwanese, Korean and Vietnamese mills dropped prices to meet that range, but now import CFR prices from all four countries have come down by another $5/mt. According to trader sources, this has not improved futures order activity, which remains only stable. For now, the average import sales price in the US is mostly within the above range, although deals as much as $1.50 cwt. ($33/mt or $30/nt) lower are attainable due to mills being hungry for orders.
Meanwhile, the average spot transaction range for US domestic finished J55 ERW OCTG casing is approximately $61.00-$62.00 cwt. ($1,345-$1,366/mt or $1,220-$1,240/nt) ex-Midwest mill, unchanged in the past week. Industry insiders continue to report that these prices are negotiable by as much as $3.00 cwt. ($66/mt or $60/nt) for those interested in booking larger orders. Inventory levels are being managed closely while mill inquires and orders are holding steady.