Both US domestic and import J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing prices have dropped in the last week as oversupply has been compounded by a reluctance to buy. Even with strong drilling activity in the US, sources tell SteelOrbis there has been a lull in the market for over a month now, as buyers are refusing to stock inventories while raw material prices are quickly falling. Domestic scrap prices are expected to settle dramatically lower this month and flat rolled spot prices continue to weaken. Meanwhile, high domestic availability has made it difficult for mills to keep OCTG casing prices stable in the current range of $65.00-$66.00 cwt. ($1,433-$1,455/mt or $1,300-$1,320/nt) ex-Midwest mill, and deep deals under the range remain prominent.
As for imports, demand has been lethargic for over a month now, and as predicted in our last report a week ago, prices have now officially fallen. Korean mills' offers to the US are down $1.00 cwt. ($22/mt or $20/nt) on the high end to $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) DDP loaded truck in US Gulf ports, and Taiwanese offer prices have followed a similar trend; offer prices from Vietnam and Turkey can be found within a largely similar range. Trader sources indicated that they aren't making any purchases at the new prices, however, as another drop may be looming in the next couple weeks.