Last week, SteelOrbis reported that spot market prices for US domestic J55 ERW OCTG casing had plunged, from $57.50-$60.50 cwt. ($1,268-$1,334/mt or $1,150-$1,210/nt), ex-mill, to $51.00-$56.50 cwt. ($1,124-$1,246/mt or $1,020-$1,130/nt), ex-mill.
This week, prices have come down another $1.50 cwt. ($33/mt or $30/nt), which brings the new average transaction range to $49.50-$55.00 cwt. ($1,091-$1,213/mt or $990-$1,100/nt), ex-mill.
As with last week, soft pricing is attributed to the falling rig count and unexciting order activity. Last week, Baker Hughes the oil rig count dropped by four, from 788 to 784. Earlier today, oil prices slipped on the heels of news that production in the Gulf of Mexico, which had stalled due to Hurricane Barry, was restarting. Following the report, West Texas Intermediate crude futures fell by 7 cents to $59.51 per barrel.