Downtrending rig counts and unexciting drilling activity continue to hinder the US domestic energy pipe market. Although official US domestic OCTG pricing is being heard at $50-$55 cwt. ($1,102-$1,213/mt or $1,000-$1,100/nt) ex-mill, sources say dealmaking is rampant. One source said some service centers have reported that mills are “so desperate for orders, they're trying to sell directly to customers. So now, instead of competing with other service centers, in some cases, we're competing with pipe mills. The whole market is a mess.”
Market players agree that the US energy pipe landscape is unlikely to change before the end of the year.