US domestic scrap prices have settled up by approximately $20/gt ($20/mt) in most parts of the country, and players within the US domestic and import API X-52 line pipe markets believe this could be favorable for line pipe pricing.
“The increase in scrap and hot rolled [coil prices] is good news and we are excited to see it, but we are still a bit hesitant about Q1 demand [for energy pipe],” a source said. “If that lines up then we could be in store for a nice start to next year.
In terms of current prices, things are mostly stable week over week, at $49.50-$52.00 cwt. ($1,091-$1,146/mt or $990-$1,040/nt), ex-mill, with import API X-52 from Mexico still trending between $46.50-$50.00 cwt. ($1,025-$1,102/mt or $930-$1,000/nt), FOB Texas.
“Prices for pipe haven’t really changed,” a source said. “There are some holes developing in inventories which is good to see but most products are still pretty heavily inventoried.”
Other service center sources, however, said that deals on heavily inventoried products are available.