Despite predictions that crude-oil prices are near bottom—if they’re not already—and a forecast for recovery on the horizon, prices for US import oil country tubular goods (OCTG) casing are increasingly flexible. Prices for unfinished J55 ERW OCTG casing from Korean producers have dropped by about $1.50 cwt. ($33/mt or $30/nt) since our last report a week ago, bringing the most current transaction range to $47.50-$49.00 cwt. ($1,047-$1,080/mt or $950-$980/nt) while prices for finished J55 ERW OCTG casing from the country are fluttering near $54.00 cwt. ($1,191/mt or $1,080/nt), both DDP loaded truck in US Gulf coast ports. Sources, however, say that deals on finished J55 ERW OCTG casing may be available based on tonnages. Taiwanese offer prices for unfinished J55 ERW OCTG casing, however, have held neutral at approximately $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt), DDP loaded truck in US Gulf coast ports. US spot market prices for finished J55 ERW OCTG casing are also unchanged, at finished J55 ERW OCTG casing continues to hold at approximately $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill; but as with last week, “everything is negotiable.”
On Tuesday, a report by the International Energy Agency predicted that a slow in the US’ output of oil, due to falling prices and declining rig counts, is likely to help firm prices; on Monday, US oil prices closed at $52.86 per barrel. And while this is certainly positive for US energy pipe markets in the long-term, it’s doing little to help in the immediate sense. SteelOrbis sources continue to report that “customers are looking for any reason they can to cancel orders.”