Tensions at the 2018 NASPD Annual Convention in Houston, Texas ran high on Friday after US Commerce Secretary Wilbur Ross released reports on the DOC’s investigation into the impact of imported steel on US national security.
The DOC’s report indicated an affirmative finding, and as such, suggested a myriad of recommendations, including a possible 24 percent “blanket tariff” on all steel imports, or a possible tariff of 53 percent against 12 countries including Brazil and Korea, both of whom are significant sources of US import line pipe products.
Mexico, however, is not among the 12 named countries, and at current, they continue to sell US import API-X52 ERW line pipe in the US domestic market at $47-$48 cwt. ($1036-$1058/mt or $940-$960/nt), FOB Houston. Taiwanese producers are also absent from that list; pricing from Taiwan for the same product is still trending at $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), DDP loaded truck in US Gulf coast ports.
Domestic line pipe manufacturers found the report to be positive, while others, who are in the business of buying and selling US import line pipe to small to mid-sized customers, have concerns they could soon be out of business.