Sources close to SteelOrbis have indicated that US domestic spot prices for J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing continue to be offered in the range of $63.00-$65.00 cwt. ($1,389-$1,433/mt or $1,260-$1,300/nt) ex-Midwest mill, reflecting no change since last week. Service center managers said that pricing, activity, and order inquiries are pretty much on par with where they were last week due to the Labor Day holiday weekend. At the same time, all eyes continue to be on the US rotary rig count. According to the most recent report by Baker Hughes, for the week ending August 31, the number of rigs drilling for oil increased from 1,408 to 1,419. This is, of course, seen as a positive development considering a decline of 16 oil rigs during the previous week. However, until this uptick becomes a noticeable trend, it’s believed that purchasing activity will remain unchanged.
Looking offshore, import J55 ERW OCTG casing offers to the US from Korea and Taiwan have trended neutral since our last report a week ago and are still in the range of $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports. Vietnamese sales prices in the US are also unchanged and continue to be reported in the range of $45.50-$46.50 ($1,003-$1,025/mt or $910-$930/nt) DDP loaded truck in US Gulf ports. Traders, though, have said that deals slightly below those ranges are available for those interested in making larger purchases.