SteelOrbis sources throughout the US continue to report that the most common concern among buyers and sellers of US domestic and import J55 ERW OCTG casing continues to be the quotas that have been implemented against Korean steelmakers.
“All of the Korean quotas have been met so nothing more can come in,” a source said. “We’re still not sure where we’re going to source (offshore) material from.
Other sources continue to report continued backlash from customers, who are unhappy that prices have gone up so much so quickly.
The biggest concern continues to relate to pricing toward the end of the year, especially of the Trump administration moves to implement import quotas on Mexico and countries in the EU, data shows that most other large suppliers of US import OCTG may already be at or near a 75 percent import quota from levels recorded in 2017.
“The fourth quarter is going to be a mess,” another source said. “We all see it coming.”
Current domestic pricing for US J55 ERW OCTG casing is still trending between $60-$70 cwt. ($1323-$1543/mt or $1200-$1400/nt), ex-mill, depending on tonnages. Meanwhile, offers for Korean J55 ERW OCTG casing that is “already here and on the ground” is being heard at approximately $65 cwt. ($1433/mt or $1300/nt), DDP loaded truck.