The US oil and gas industry may be booming, but buyers of US import API X-52 line pipe say they’re increasingly frustrated over the Trump administration’s unwillingness to grant Section 232 import tariff exemptions.
“All this is, is a tax. Everything costs more and there’s really no good reason for it, other than the fact that the President sees to be determined to keep up his global trade war,” a source said. “A lot of us in the industry were hopeful that things would change for the better when Trump was elected, but the Section 232 tariffs are less about national security concerns and more about US protectionism.”
News reports indicate oil production in the Permian is exceeding current pipeline capacity, and it’s estimated that thousands of miles of new pipeline is needed. The challenge, sources say, is finding affordable energy pipe, since imports from Korea are under quota, while other global suppliers are being hit with a 25 percent tariff.
And while thousands of tariff exclusion requests have been filed with the US Department of Commerce, less than 300 have been approved to date.
As such, pricing for US domestic API X-52 line pipe continues to be at near-record levels; spot market prices are still trending between $70.00-$72.50 cwt. ($1543-$1598/mt or $1400-$1450/nt), ex-mill.