Experts believe that the demand for US domestic and import API X-52 ERW line pipe will maintain a slight uptrend in the coming months, due to maintained drilling efforts and the strength of global oil prices.
At current, it’s being reported that some of the world’s largest oil traders expect oil prices to inch above $60 per barrel in the upcoming year. Those involved with the buying and selling of energy pipe obviously see this as a positive.
“Unless there is a big shakeup with global oil prices, we’re optimistic about the state of the line pipe market,” a source said. “We expect to see sustained drilling in the US and we expect to see an increase in line pipe demand due to infrastructure needs.”
And while Baker Hughes has reported that this week’s oil rig count is down by seven, to 736, there are still 293 more rigs drilling for oil today than there were during the same reporting period last year.
Overall line pipe pricing has remained stable week-over-week. US import API X-52 ERW line pipe from Korea in the US domestic market continues to be heard at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), DDP week-over-week, while the most commonly heard price range for US import API-X52 ERW line pipe from Mexico in the US domestic market is still trending between $46.50-$47.50 cwt. ($1025-$1047/mt or $930-$950/nt), FOB Houston.