Current spot market prices for US domestic J55 ERW casing, and US import J55 ERW OCTG casing have remained stable week-over-week.
On the domestic front, prices continue to hold at $47.50-$50.00 cwt. ($1047-$1102/mt or $950-$1000/nt), ex-mill, while pricing for import OCTG casing from Taiwan in the US domestic market is also lateral, at $41.00-$42.50 cwt. ($904-$937/mt or $820-$850/nt), DDP loaded truck in US Gulf coast ports.
Service center sources, however, have reported increased flexibility on price, due to a desire to draw-down inventory levels in advance of the end of the year, as to avoid paying year-end-inventory taxes.
Market players continue to report a sense of optimism due to stable, if not strengthening oil prices. Earlier today, Morgan Stanley raised its oil forecast for oil prices through 2020; the bank further revised its prediction for international benchmark Brent crude prices up $7 during Q4 2017, to $62. Their expectation for US West Texas Intermediate crude prices was also revised upward, from $48 to $56.
Today, Brent crude prices settled at $63.80 per barrel, and despite the day’s 47-cent loss, prices are still 30 percent higher than levels recorded in June.