In late September, SteelOrbis reported that US import standard pipe tonnages had spiked year-over-year. August import tonnages were up by 47 percent, while the most recent data from the US Department of Commerce indicates that September import tonnages are up by more than 27 percent.
As of yesterday, license data indicates that the US has imported 50,193 mt of standard pipe to US ports; if current import arrival levels remain steady, it is likely that October 2017 imports will exceed the 65,717 mt (census data) that arrived at US ports one year prior.
Market sources also note that current capacity utilization rates, which were recorded at 74.7 percent for the week ending Oct. 14, could be higher; some are still pushing for corrective tariffs in the currently-shelved Section 232 investigation.
Others believe the spike in import arrivals during the months of August, September and October are a direct result of the filing of the Section 232 investigation, as a number of buyers rushed to book offshore in an effort to “get their tons into the ports” before any final determination on tariffs was made. As such, current inventory levels remain “more bloated than the domestic mills would like.”
In terms of pricing, domestic spot market prices for Grade A ERW BPE continue to remain in an “official range” of $46-$48 cwt. ($1014-$1058/mt or $920-$960/nt), ex-mill, although sources close to SteelOrbis have indicated that pipe mills are “open and willing to negotiate price,” especially due to downtrending scrap and HRC prices. Deals up to $2.00 cwt. ($44/mt or $40/nt) are said to be available within the marketplace.