Futures import prices for
US import J55 electric resistance weld (ERW) oil country
tubular goods (OCTG) casing from Korean mills have, as expected, started to firm since our last report a week ago, as long lead-times and full order books have placed Korean mills in a strong place to ask for higher prices. “Prices are up about $20/nt give or take,” according to one Midwest-based trader source, which has brought the current futures range to approximately $53.00-$54.00 cwt. ($1,060-$1,080/nt or $1,168-$1,187/mt), DDP loaded truck in
US Gulf coast ports, while prices out of
Taiwan are unchanged in the past seven days, now trending approximately $2.00 cwt. ($44/mt or $40/nt) below Korean offers. What is of interest, however, is current offer prices out of the
Philippines, which are said to be in the $46.50-$47.50 cwt. ($1,025-$1,047/mt or $930-$950/nt), also DDP loaded truck in
US Gulf coast ports.
In terms of domestic prices, those have held relatively stable. Although
US producers are pushing for price increases on both ERW and seamless OCTG casing, the most common belief is that while seamless prices may start to tick upward due to less competition, ERW prices will hold mostly stable. “If buyers have a choice of buying Korean over
US J55, nine times out of ten they’re going to choose the Korean pipe because it’s better quality,” according to one Texas-based service center. “And even with the Koreans raising their prices, it’s still cheaper than what the
US mills are asking.” For now, the most commonly reported
US spot price transaction range for J55 ERW OCTG casing remains in the approximate range of $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill.