US OCTG market prepares for higher prices despite current discounting

Wednesday, 21 December 2011 02:33:07 (GMT+3)   |  

As expected, US domestic and import energy pipe market activity has been quiet in the last week with the upcoming Christmas and New Year holiday, but 2012 may kick off with higher prices. US domestic J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing spot prices are unchanged from last week and are still approximately $65.00-$66.00 cwt. ($1,433-$1,455/mt or $1,300-$1,320/nt) ex-mill, with discounting heard as much as $5.00 cwt. ($110/mt or $100/nt) below the range due to domestic mill and import competition. However, with demand anticipated to pick back up early next year and domestic raw material prices on the rise, spot prices will likely begin to firm in the first few weeks of January.

Meanwhile, import J55 ERW OCTG casing offer prices from Korea and Taiwan to the US are still between $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) DDP loaded truck in US Gulf ports after increasing by $1.00 cwt. ($22/mt or $20/nt) a week ago. Turkish prices are also unchanged and remain about $51.00 cwt. DDP loaded truck in US Gulf ports, while Vietnamese offer prices to the US have firmed by about $0.50 cwt. ($11/mt or $10/nt) since last week and are now approximately $50.50 cwt. ($1,113/mt or $1,010/nt) DDP loaded truck in US Gulf ports. Even with a slow holiday week, import purchasing activity has also increased, as US buyers started placing orders offshore in case import prices rise further.


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