Activity within the US import line pipe has begun to pick up this week, after two-weeks of lackluster activity due to the year-end holiday season. Pricing, however, has remained stable.
Current prices for Korean API X-52 ERW line pipe in the US domestic are unchanged in the past two weeks, at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), DDP loaded truck in US Gulf coast ports, while pricing from Mexican mills continues to trend between $50-$54 cwt. ($1102-$1191/mt or $1000-$1080/nt), FOB Houston, depending on the originating mill.
In terms of oil prices, some analysts predict a downward price correction could correct between 10 and 15 percent in the upcoming months, which could have a negative impact on US oil drilling projects. One senior analyst told a US news source that the current oil price rally is unlikely to continue, as current fundamentals within the market do not support current price points.
Further, it is also worth nothing that Suadi Aramco has cut the price of its oil to US buyers for the second time in a month. The move comes as an effort to “save” market share within the United States.