Decreased raw material prices in the Far East have continued to place downward pricing pressure on import offer prices to the US for import API X-42 electric resistance welded (ERW) line pipe. Prices from Korea, Taiwan, Turkey and Vietnam have come down by approximately $0.75 cwt. ($17/mt or $15/nt) across the board in the past seven days. The average sales price in the US for import API X-42 electric resistance welded (ERW) line pipe from Vietnam and India is now in the approximate range of $42.25-$43.25 ($931-$950/mt or $845-$865/nt) DDP loaded truck in US Gulf port, while the average sales price in the US for line pipe from Korea and Taiwan is between $42.75-$43.75 ($942-965/mt or $855-$875/nt) DDP loaded truck in US Gulf ports. Traders, though, say they are booking orders only on an as-needed basis. No one, they said, is booking futures to pad inventories at this point because of the current downward pricing trend.
Meanwhile, US domestic prices for API X-42 ERW line pipe have held steady in the past seven days, although mills are becoming increasingly flexible in terms of negotiating discounts for larger orders. That having been said, while the most commonly reported domestic spot transaction range is still $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-mill, deals as much as $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below this range are attainable for those looking to book larger orders. As with imports, buyers of domestic product are only placing orders for what’s needed in order to fill inventory gaps.