SteelOrbis sources have said that service centers who have been “stock heavy” on Korean API X-52 line pipe have been “racing to the bottom with fire-sale pricing” as a means of depleting stock and avoiding the year-end inventory tax.
In some cases, sources note, Korean on-the-ground X-52 has been selling “at or around $42.50 cwt. ($937/mt or $850/nt),” ex-warehouse. New Korean material, however, that’s being sold for future shipment, is transacting at approximately $48.00 cwt. ($1,058/mt or $960/nt), DDP loaded truck in US Gulf coast ports.
Domestic material for Q1 production, is being heard in the range of $49.50-$52.00 cwt. ($1,091-$1,146/mt or $990-$1,040/nt), ex-mill. Sources say they are still keeping tabs on the OPEC / Russia deal to take 500,000 barrels of oil, per day, out of the global marketplace, as it’s believed higher oil prices could have a positive impact on drilling projects and thus, energy pipe demand.