The US domestic and import J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing markets continue to trend slow, according to sources close to SteelOrbis, who point out that previously seen upticks in oil rig count have reversed. Increases seen in the early part of July were the first seen this year, according to Baker Hughes, and despite the number of US rigs having fallen from 645 to 638, the rig count is still up month-on-month.
The increase, however, hasn’t done much to impact orders, activity and inquiries within the US domestic or import OCTG markets. “Things are still pretty slow and we just don’t see that changing any time in the near future,” according to one Texas based source. US spot prices for finished J55 ERW OCTG casing continues to trend at approximately $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), ex-Midwest mill, although anyone who is looking to book significant tonnages could easily negotiate a better deal. Futures offers, however, have shifted downward. Prices for unfinished J55 ERW OCTG casing from Korea and the Philippines have fallen by approximately $3.50 cwt. ($77/mt or $70/nt) and are now available in the approximate range of $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt), DDP loaded truck US Gulf Coast ports, although trader sources have said that deals below that range are available based on tonnage. Interest in booking futures continues to remain weak.