Import API X-42 electric resistance welded (ERW) line pipe prices from Korean, Taiwanese, Vietnamese and Indian mills may have held steady in the past week, but buyers can still obtain deals $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) below the average range of $54.00-$54.50 ($1,191-$1,202/mt or $870-$880/nt) DDP loaded truck in US Gulf ports for significant tonnages. Trader sources say there is little interest in booking speculative tons and that orders are only being placed on an "as needed" basis.
In the US, the domestic market trend is consistent with what has been reported in recent weeks. Pipe mills are still overproducing, according to buyer sources, which is apparent based on short, four-week lead times and mills' significant price flexibility on larger orders. Although the most commonly reported spot transaction range is still $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-mill, unchanged in the past week, deals as much as $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below the average range can be negotiated on significant tonnages. Industry insiders say unless the number of active rigs drilling for oil begin to increase at a steady pace, the current market trend is likely to continue.