Sources within the US domestic OCTG market say they’re keeping close tabs on both oil prices and the US political market, in hopes that this will help bring clarity with regard to the state of the energy pipe market.
Prices for US domestic OCTG coil are still being heard in the range of $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, although it’s largely held that mills are negotiating quiet deals, due to falling substrate prices. Scrap settled down sharply during the January buy cycle, and US HRC prices continue to trend soft.
Many have reported that in-stock inventory was purchased at price points above replacement costs, which has many being cautious with buys.
“I think a lot of people ran out last year and went crazy with their buys because we all expected this huge pipe shortage in Q4, but the shortage never happened,” a source said. “Now everyone seems to still be working through that inventory, and we’re waiting for that to work itself out.”