In late April, news outlets reported that the collapse in global oil prices led to the steepest drop in onshore US-based oil fields in more than 14 years. It’s still widely believed that drillers are going to cancel and abandon projects until oil demand, and prices, begin to recover.
Last week, it was reported that domestic rig counts and oil production will continue to fall for the rest of the year.
Suffice to say, the energy pipe markets are still getting hammered.
“I honestly can’t give you an accurate price for Korean [J55 ERW OCTG casing] material right now. I could try to give you a price, but no one is ordering,” a source said. “Who knows how low the mills would go if someone actually wanted to place an order.”
Service centers within the US are reporting a similar situation, with other sources saying that the price for material is based on “how desperate the seller is for cash flow.”
In terms of the “most recent” pricing, the estimated cost for domestic J55 ERW OCTG casing is believe to be at approximately $47.50 cwt. ($1,047/mt or $950/nt) ex-mill, although offers up to $2.50 cwt. ($55/mt or $50/nt), if not more, below that price point are believed to be available to buyers who are wanting to book a true order.