Brent crude prices hovered close to the $80 per barrel mark earlier today, after concerns about supply shortages began to permeate the market; Reuters reported that today’s trading session was especially volatile, due to a combination of supply shortages out of Iran and Venezuela and President Donald Trump’s comments expressing dissatisfaction with trade talks with China.
Crude oil is trading at its highest levels in about 3.5 years, sources note, which is helpful to the US OCTG market that is currently dealing with record-high pricing.
Current domestic pricing for US J55 ERW casing is still being heard between $60-$70 cwt. ($1323-$1543/mt or $1200-$1400/nt), ex-mill, depending on tonnage size. Questions as to whether Section 232 petitioners, who have requested that certain OCTG imports from the US receive an exclusion from tariffs and quotas, are unlikely to be answered until the end of next week.
“Prices are high now, but if quotas are going to be enforced, we’re bound to see some supply chain problems toward the end of the year,” a source said. “If that happens, sellers who have in-stock items in Q4 will essentially be able to name their price.”
Updated import pricing is expected to be available toward the end of next week, after the Trump administration makes a final decision on Section 232 tariffs and imports.