Price points for US domestic J55 ERW casing have adjusted slightly since our last report a week ago, from $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt) ex-mill, to $49-$54 cwt. ($1,080-$1,191/mt or $980-$1,080/nt), ex-mill.
“Prices went up a little bit when HRC and scrap prices were higher, but the sun never seems to stay out for long,” a source said, adding that while “there’s still a lot more pipe being used than a lot of people think, based on where the rig count is,” that the energy pipe market isn’t expected to see a meaningful recovery until the rig count begins to climb.
For the week ending January 10, 2020, Baker Hughes reported that the US rotary rig count was down by 15, to 781. For week ending January 17, 2020, the US rotary rig count climbed by 15, to 796.
“The rig count has basically been a wash,” another source said, pointing out that the total rig count is more than 24% lower than where it was during late January 2019.
Looking offshore, trader sources have confirmed that offers from Korean steelmakers are quiet, for now, as Korean mills are trying to get a gauge of raw materials costs. “We expect things out of Korea will be quiet for the next couple of weeks.”