The US line pipe market is stable since our last report a week ago, as most within the US have just returned to work after the year-end holiday season. As such, the most recently heard offers from US producers and Mexican mills are stable.
Offers from Mexican mills are still being heard in the range of $62.50-$65 cwt. ($1,378-$1,433/mt or $1,250-$1,300/nt), FOB Texas, while spot market prices from domestic pipe producers have remained in the range of $64-$67 cwt. ($1,411-$1,477/mt or $1,280-$1,340/nt) ex-mill.
Of note, however, are plans from the Mexican government to seek an exclusion from the Section 232 tariff. Mexican officials remain steadfast that the country does not pose a security threat to the United States with regard to steel exports, and as such, the tariff should be ended. It’s not immediately clear when the US will make a decision on that request.