US domestic J55 ERW OCTG casing prices have become increasingly flexible in the past week. In mid-April, SteelOrbis reported that the average spot market price was hovering at approximately $47.50 cwt. ($1,047/mt or $950/nt) ex-mill, although market activity was light and deals were readily available. This week, it’s been heard that offers up to $2.50 cwt. ($55/mt or $50/nt) below that price point “are quietly out there.”
The problem, though, continues to be an abysmal-at-best market environment.
For example, on Friday, Baker Hughes reported that the number of rigs drilling for oil declined by 66 week-over-week, bringing the total US oil rig count to 438. Yesterday, news outlets reported that US oil prices took an unprecedented turn for the worse- with oil barrel prices having turned negative. Ultimately, oil producers are paying buyers to take oil off their hands.
Demand for oil is expected to remain tepid at best in the upcoming months, due steep declines in demand.