Little, if anything has changed within the US domestic and import API X-52 spot markets since our last report a week ago. Domestic prices are still trending in the range of $64-$67 cwt. ($1,411-$1,477/mt or $1,280-$1,340/nt), ex-mill, whereas prices from Mexico for that same product continue to hold at $65 cwt. ($1,433/mt or $1,300/nt), FOB Texas. The Mexican pricing includes the Section 232 tariff.
Sources close to SteelOrbis say they are still keeping close tabs on whether the Trump administration will move forward with replacing Section 232 tariffs against Mexico with quotas, adding that while quotas would likely “be fine, unless they really constrict supply.”
Others say that while it is still “too soon to try to make heads or tails over what’s coming for 2019, it’s likely that pipe availability from stock will start becoming more difficult,” which could spur order activity with both domestic and offshore mills.