Sources close to SteelOrbis have indicated that while finished US domestic J55 ERW OCTG casing is still available in the approximate range of $65-$70 cwt. ($1433-$1543/mt or $1300-$1400/nt), ex-mill, offshore, on the ground material continues to be available.
Today, a Midwest-based source confirmed that he’s “come across some Korean (carbon) casing items that are being sold at $75 cwt. ($1653/mt or $1500/nt),” while Taiwanese products can be had for a bit cheaper.
“I’ve seen some finished stuff out of Taiwan that’s being offered at a discount to the Korean stuff, and in some cases, it may be available at $68.75 cwt. ($1516/mt or $1375/nt) if someone is eager to get rid of it. It’s weird how you can get people to drop their high numbers if you have real orders.”
Order activity remains robust, which is largely tied to the strength in the US rig count and the strength in global oil prices.