Sources close to SteelOrbis have confirmed that spot market pricing for US domestic J55 ERW OCTG casing is still trending in the range of $60.00-$62.50 cwt. ($1,322-$1,378/mt or $1,200-$1,250/nt), ex-mill, although as with last week, service center spot market deals are “all over the map.” The difficult trend to pinpoint ex-service center pricing is consistent with what typically happens during the final months of the year.
Sources are also expressing concern over increased chatter that the US may move toward a global quota system, as opposed to Section 232 tariffs. Although some buyers are still booking tons from offshore producers, others say that the market situation that unfolded in the weeks after Section 232 was announced, when it took several weeks to determine which countries would be hit with quotas and which would be slapped with tariffs, is still fresh in mind.
“Our company has personally been impacted by the quotas against Korea, and in one case, we booked large tonnages of J55 casing, but we were only able to take possession of about a third of the order, because the quota limit had been reached,” a source said. “When people order OCTG casing it’s because they have a need, and there’s some reluctance to book offshore out of fear that the rug could once again be pulled out from beneath us.”