SteelOrbis has learned that domestic J55 ERW casing prices continue to be heard in the range of $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt) ex-mill, although sources close to SteelOrbis have reported that pipe mills are trying to get prices higher, due to higher US scrap and HRC prices.
However, lagging rig counts and poor end-use activity are hindering mills’ wishes. Baker Hughes has reported that for the week ending January 10, 2020, the US rotary rig count was down by 15, to 781. The most recent rotary rig count reflects a 294-rig drop, year-over-year.
The number of rotary rigs drilling for oil was down 11 to 659. There are 214 fewer rigs targeting oil than last year. Rigs drilling for oil are 84.4 percent of all drilling activity. Rigs targeting natural gas were down 4 at 119. The number of rigs drilling for gas is 83 lower than last year.
Year-over-year oil exploration in the U.S. is down 24.5 percent. Gas exploration is down 41.1 percent.