Import J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing demand continues to be strong, keeping traders busy.
Vietnam, which came back into the market a few weeks ago, quickly booked out, and current offers are attached with lead times now into May/June. Offer prices from
Vietnam to the
US are currently in the range of $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in
US Gulf ports, compared to $49.50-$51.50 cwt. ($1,091-$1,135/mt or $990-$1,030/nt) DDP loaded truck in
US Gulf port from
Korea. Korean offer prices are up about $0.50 cwt. ($11/mt or $10/nt) since last week--Korean mills issued an approximately $30/mt increase in offer prices to the
US, although only a portion of it has gone through for now.
Taiwan and
Turkey are both also offering J55 ERW OCTG casing to the
US, with offer prices
about $0.50-$0.75 cwt. ($11-$17/mt or $10-$15/nt) below
Korea's.
In the US domestic market, oil shale plays, particularly the Eagle Ford, is keeping OCTG casing demand strong. However, because import competition is still fierce and US domestic J55 ERW OCTG casing production is high, spot prices have remained steady again this week, and industry insiders anticipate that prices will likely continue their neutral trend throughout the rest of this month. Current spot prices are within the previously reported range of $66.00-$67.00 cwt. ($1,455-$1,477/mt or $1,320-$1,340/nt) ex-mill, although larger projects or orders are easily garnering a discount.