Spot market prices within the US domestic J55 ERW OCTG continue to trend in the range of $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, but sources say that the recent flat rolled steel price increase, which some hoped would “shore up” domestic tubing prices, has failed to deliver.
Market sources say their primary concern is downward pricing pressure, which is linked to wild price swings in the oil market, falling US oil rig counts and “basic oversupply.” Some sources who are holding inventory said that replacement costs are below current inventory costs.
Sources throughout the market say they will play close attention to tonight’s State of the Union Address. It’s widely held that the speech will address US-China trade relations progress; news outlets have reported that Chinese economic data is still showing signs of a slowdown as uncertainty over trade negotiations are hampering activity.