US line pipe prices still steady, for now

Wednesday, 09 November 2011 02:17:43 (GMT+3)   |  

While continuing to feel pressure from recent declines and growing volatility in US domestic flat rolled prices, domestic API X42 electric resistance welded (ERW) line pipe spot prices have managed to hold on for another week in the range of $63.00-$64.00 cwt. ($1,389-$1,411/mt or $1,260-$1,280/nt) ex-Midwest mill. Demand for line pipe is still stable, as the US rig count registers continuous increases on an almost week-on-week basis, but with the end of the year fast approaching, distributors are keeping inventories especially lean, and are remaining extremely cautious in order to be able to react quickly in case of any market fluctuations. Most mills are consumed enough with drilling projects to not be offering much on the spot market, but buyer sources tell SteelOrbis that if some extra tons become available, "they may be quickly sold off at below market prices," so the mill isn't left with too much inventory on the ground.

As for imports, activity is still mostly steady, but many traders are anticipating prices to fall further and are therefore avoiding making any large buys at the moment. After falling last week, Korean and Indian offer prices to the US for API X42 ERW line pipe have stayed neutral in the range of $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt), and $50.50-$51.50 cwt. ($1,113-$1,135/mt or $1,110-$1,030/nt), respectively, both DDP loaded truck in US Gulf ports.

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