Activity, pricing and inquiries within the US domestic and import J55 ERW OCTG casing markets have begun to taper off, sources say, adding that the market as a whole is expected to remain sluggish through the end of 2017.
Texas-based sources have confirmed that pricing for import OCTG casing from Taiwan in the US domestic market continues to be heard at $41.00-$42.50 cwt. ($904-$937/mt or $820-$850/nt), DDP loaded truck in US Gulf coast ports, while spot market prices for US domestic J55 ERW OCTG casing are still trending at $47.50-$50.00 cwt. ($1047-$1102/mt or $950-$1000/nt), ex-mill.
It’s further believed that domestic spot pricing will inch upward in 2018, due to forecast increases in scrap and US HRC pricing. There are also questions surrounding a key report within the Section 232 investigation, which is due in mid-January.
News outlets have reported that remedy exclusions are being considered for several countries, including Mexico, Canada, Japan and South Korea, although the final decision will be left in the hands of Donald Trump. Current import OCTG tonnages for these countries are listed in the chart below:
Country | October OCTG imports (census data) | November OCTG imports (license data) |
Mexico | 26,029 mt | 39,426 mt |
Canada | 22,165 mt | 16,131 mt |
Japan | 3,802 mt | 10,464 mt |
South Korea | 95,661 mt | 66,095 mt |