March 8 import license data from the US Department of Commerce show 235,181 mt of line pipe import permits from global sources. If the number translates to final census totals, April import arrival tonnages would be at near-record levels. The only other month in the past 14 months that exceeded April tonnages would be September 2017, when the US imported 250,803 mt (census data.)
Sources close to SteelOrbis say that US domestic pricing continues to hold level, at approximately $67.50-$70.00 cwt. ($1488-$1543/mt or $1350-$1400/nt), ex-mill, but concerns abound regarding possible year-end pipe shortages due to Section 232 import quotas.
“Less pipe plus strong demand could lead to a spike in prices,” a source said.
US drilling activity is still robust, which is evidenced in a recent report by the Railroad Commission of Texas, which found that oil and gas drilling permits within the state are up by 34 percent year-over-year.