It’s been a week since the US DOC recommendations in the Section 232 investigation against steel imports were made public, and tensions within the US energy pipe market continue to run high.
Many have expressed concerns that if wide sweeping tariffs and/or import quotas are implemented, the result could lead to a shortage of energy pipe in the domestic market. And while a shortage would be a potential boon for US pipe producers, there are still widespread concerns about how higher domestic prices would impact the downstream market, as the increased costs would ultimately be passed on to consumers.
Some SteelOrbis sources have indicate the uncertainty has led to an uptick in interest in booking from Mexico and Taiwan.
Current pricing, however, remains unchanged. Import API-X52 ERW line pipe in the US domestic market from Mexico continues to hold at $47-$48 cwt. ($1036-$1058/mt or $940-$960/nt), FOB Houston, while import API-X52 ERW line pipe in the US domestic market from Taiwan has remained in the range of $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), DDP loaded truck in US Gulf coast ports.