SteelOrbis sources throughout the US have said that market conditions for US domestic and import J55 ERW OCTG casing are bleak at best. One Texas-based source said that this year is “probably the worst year we’ve had since I’ve been in the business,” adding that inquiries and order activity are mostly non-existent.
“People who are holding inventory are practically giving it away because they need cash flow,” a source said. “Everything is soft across the board.”
Another source agreed, citing poor drilling activity. “Drilling isn’t going to improve for the rest of the year, and without drilling activity the entire market is stuck.”
This week, prices for domestic and import (Korean) J55 ERW OCTG casing are being heard in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt), ex-mill and DDP loaded truck in US Gulf coast ports, respectively. Deals below this range are available on a case-by-case basis.