Abysmal rig count levels and weakened oil demand continue to hinder the energy pipe markets. On Friday, it was reported that global oil demand had fallen by roughly 30 million barrels per day in April. And while some forecasts point to a V-shaped rebound in the second half of 2020, when stay-at-home orders are projected to be loosened and people return to work, for now, it’s painfully clear that the COVID-19 pandemic is far from over.
Case in point: news today that Russia and Saudi Arabia are engaged in talks to enact even deeper oil production cuts, in hopes of stabilizing global oil prices. In terms of how this is impacting the API X-42 line pipe market, “everything is as you’d expect,” a source said.
“In terms of activity, there’s nothing much to report. As far as prices go, prices are mostly flat but there are definitely deals for people who are wanting to buy,” he continued. Last week, spot market prices were trending in the range of $46.50-$49.00 ($1,025-$1,080/mt or $930-$980/nt), ex-mill. This week, prices are trending at $46.50-$48.00 cwt. ($1,025-$1,058/mt) or $930-$960/nt), ex-mill.
“Everything is slow. It’s just the same old thing one day after the next,” another source added. “There is very little demand and the only silver lining is that a lot of domestic pricing is idling, and import numbers are very low. Once we get back going, inventory levels won’t be high. Prices are soft but they’re not falling off a cliff. Nobody wants to be that guy to solicit stupid prices.”