Prices for US domestic API X-52 line pipe continues to trend at its highest level in years; this week, sources close to SteelOrbis have indicated that spot market prices are trending between $70.00-$72.50 cwt. ($1543-$1598/mt or $1400-$1450/nt), ex-mill.
As of mid-day Friday, Brent crude was trading at $73.03 per barrel, while US West Texas Intermediate was holding at $69.46 per barrel. Donald Trump’s criticism of the Federal Reserve for its decision to raise US interest rates led to a weakening of the dollar, which some believe have helped prevent prices from being pushed higher.
Other sources continue to question how the prospect of an all-out global trade war will impact oil prices moving forward. Some feel these concerns will prevent oil prices from climbing higher in the short-term. Yet current price points are good news for those involved in buying and selling energy pipe, continued strength in oil prices has demand for energy pipe holding stable.
Also of note is the court motion filed yesterday by the American Institute for International Steel (AIIS) and two of its member companies; the motion seeks to halt enforcement of the Section 232 tariffs.
Should AIIS be successful in undoing Section 232, concerns about import API X52 line pipe shortages from Korean steelmakers would be alleviated; the return of Korean pipe to the US domestic market, however, would surely place downward pricing pressure on US spot market.