Market players within the API X-52 line pipe market continue to report a lot of market optimism due to upticks in rig count and oil prices that continue to hold above $50 per barrel, and say they believe that orders and activity within the market will remain stable in the short term. Some, however have expressed concern that upticks in oil production from US shale region, combined with the possibility that OPEC may not extend current collective cuts in production, could create an oil supply glut in 2018.
If the global inventory overhang continues, not only would this have a negative impact on oil prices, it could have a negative impact on US rig counts.
For now, the most commonly heard spot price transaction range for US domestic API-X52 line pipe is currently being heard at $55.25-$56.25 ($1218-$1240/mt or $1105-$1125/nt), ex-mill; whereas trader sources have confirmed that US import API X-52 line pipe prices from Korea are being heard at approximately $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), DDP loaded truck in US Gulf coast ports, although some report receiving bids from offshore mills slightly below that level.
US import API-X52 ERW line pipe prices from Mexico are still being heard at approximately $46.50-$47.50 cwt. ($1025-$1047/mt or $930-$950/nt), FOB Houston, although sources have said that the actual spread in pricing can vary “quite a bit” depending on the manufacturer. The above stated range, however, represents the most commonly reported range.