Tenaris yesterday announced they would be raising US domestic line pipe prices by $3.75 cwt. ($83/mt or $75/nt) effective immediately. This announcement comes on the heels of a weeks-long uptrend in US domestic hot rolled coil (HRC) prices; it should also be noted that US domestic scrap prices have settled up for the second month in a row. Both of these factors have led to upticks in pipe mills’ input costs.
Overall order activity and inquiries, however, remain depressed.
Overall order activity and inquiries, however, remain depressed.
The total US rotary rig count continues to trend at its lowest level since Baker Hughes first began counting rigs in 1949. It is likely the lowest back to around 1860 or 1900 if only rotary drilling rigs are counted.
Sources close to SteelOrbis have also noted that that while global oil prices seem to be showing signs of stabilization, “recovery is still months out, at least.”
In terms of offshore pricing, futures prices from Korean and Taiwanese producers for API X-42 EWR line pipe are still trending in the approximate range of $25.50-$26.50 cwt. ($562-$586/mt or $510-$530/nt), DDP loaded truck in US Gulf Coast, while US domestic spot market prices are also still holding at approximately $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), ex-Midwest mill, but as in previous weeks, all pricing is flexible. Some Texas-based sources have indicated that on-the-ground inventory may be available at a significant discount as “many sellers are desperate for cash flow.”