Import CFR offer prices for Korean, Taiwanese and Vietnamese unfinished J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing to the US increased substantially during the last two weeks of February, but mill asking prices have finally leveled off. CFR pricing from Taiwan increased by $70/mt toward the end of last month, whereas prices from Korea and Vietnam surged $60/mt. The increases were no reflection on demand levels, but rather the mills' attempts to raise pipe prices in line with the increased cost of raw materials in the Far East. So while mills are eager to attain higher prices, buyers have told SteelOrbis that those looking to place a larger order with any of the aforementioned mills wouldn't find it difficult to do so at the previous price level of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports. Whether this trend will continue to hold, or whether sales prices will begin to tick upward, has yet to be seen.
Meanwhile, the average spot price transaction range for US domestic finished J55 ERW OCTG casing is still being seen in the approximate range of $61.00-$62.00 cwt. ($1,345-$1,366/mt or $1,220-$1,240/nt) ex-Midwest mill, reflecting no change in the past week. Buyers placing larger orders, however, continue to be heard paying $5.00-$6.00 cwt. ($100-$132/mt or $100-$120/nt) below that range from larger service centers. Industry insiders have said that business is steady, but light, and the trend of managing inventories tightly continues to sustain.