Bloated inventories and lackluster order placement has many within the US domestic and import J55 ERW OCTG casing saying that market conditions “leave a lot to be desired.”
Last week, SteelOrbis reported that an inventory pile-up would likely take between 3-4 months to work through. In the current week, that speculation continues to hold true.
“There isn’t a lot going on and outside of a major unforeseen market event, we don’t expect anything to change in the short-term,” a source said. “The market is what it is and there’s not a lot going on.”
As with last week, domestic spot market prices for US domestic J55 ERW OCTG casing remain in the “official” range of $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, although deals below that range are available. Deals at the service center level for in-stock items are rampant, a source said.
In terms of imports, sources have once again confirmed that Korean finished J55 ERW OCTG casing in the US domestic market is being sold at approximately $62.50 cwt. ($1,378/mt or $1,250/nt), ex-warehouse.