Last week SteelOrbis speculated that US domestic J55 ERW OCTG pricing could soon face a correction. The prediction was made based on multiple sources confirming that inventory levels are higher than previously anticipated, coupled with lessened order activity. This week, that correction has finally materialized.
Current prices are down by $2.50 cwt. ($55/mt or $50/nt), bringing the average spot market price range to $61.50-$66.50 cwt. ($1,355-$1,466/mt or $1,230-$1,330/nt), ex-mill.
Import offers from Korean steelmakers, however, are stable and being heard at $65-$66 cwt. ($1,433-$1,455/mt or $1,300-$1,320/nt) DDP loaded truck in US Gulf coast ports, for delivery after the first of the year. Trader sources say they are actively trying to ensure that any tons booked from Korea arrive before January 15, due to concerns over the Section 232 quota. Sources say orders that arrive after that date may not be available for delivery to customers.