As with last week, spot market prices within the US domestic API X-52 ERW line pipe market continue to trend in the range of $61-$64 cwt. ($1,344-$1,411/mt or $1,220-$1,280/nt), ex-mill; Meanwhile, import offer prices from Mexico are still “mostly consistent” with US offers, FOB Texas. Sources note that overall order activity is consistent, but lackluster.
“The pipe market is fairly flat right now,” a source said. “There is downward pressure on line pipe. Inventories appear to be a little higher than most are comfortable with. Domestic [hot rolled] coil prices going up would make you think pipe replacement prices would be going up, but with heavy inventories mills aren’t really raising prices because they need to fill their order books.”
In terms of oil prices, news outlets have reported that prices are up 4 percent week-over-week. On Friday, West Texas Intermediate crude prices settled at $58.52 per barrel, while Brent crude settled at $67.16 per barrel.
As far as rig counts, the most recent data from Baker Hughes indicates that for the week ending March 15, 2019, the number of US rotary rigs drilling for oil was recorded at 833, which reflects a 1-rig drop from levels seen a week ago. The current number of rigs drilling for oil is up by 33, year-over-year.