Pricing for US domestic J55 ERW OCTG casing continues to trend between $60-$70 cwt. ($1323-$1543/mt or $1200-$1400/nt), ex-mill, although prices are currently climbing within that range.
Oil drilling activity is still robust, as evidenced by current rig counts. Baker Hugues reports that for the week ending June 8, there are 862 rigs drilling for oil; that number reflects a year-over-year increase of 121. Year-over-year oil exploration is up by more than 16 percent.
Demand for energy pipe is still strong, sources note, adding that there continues to be widespread concern that prices will continue to rise in the upcoming months, due to decreased import arrivals.
In terms of current import pricing, Korea, “on the ground”J55 ERW OCTG casing is still being heard at approximately $65 cwt. ($1433/mt or $1300/nt), DDP loaded truck US Gulf coast ports; material is running out quickly.