Spot pricing for US domestic J55 electric resistance welded (ERW) oil country tubular goods (OCTG) casing has not changed since our last report a week ago. Spot prices continue to be seen in the $63.00-$65.00 cwt. ($1,389-$1,430/mt or $1,260-$1,280/nt) range, ex-Midwest mill. Some sources tell SteelOrbis this is to be expected due to the seasonal, lackluster sales volumes typically seen during the summer months, while others point to a downshift in confidence, noting the continued drop in US oil rig counts. According to the most recent report by Baker Hughes, rig counts for the week of July 20 are at 1,935, reflecting a week-on-week decline of 18. This downtick highlights an ongoing downward trend, as declines have been reported for several weeks.
The import J55 ERW OCTG casing market has also been quiet over the past week, and Taiwanese and Korean offer prices to the US have continued on their sideways trend and are still being reported in the range of $47.00-$49.00 cwt. ($1,036-$1,080/mt or $940-$980/nt) DDP loaded truck in US Gulf ports. Vietnamese offerings are also being spoken of, with spot offers being seen about $0.50 ($11/mt or $10/nt) below Taiwanese and Korean offerings. Sources close to SteelOrbis said that with lead times still trending into late 2012, many are reluctant to bite. For now, activity remains relatively quiet and traders are waiting for activity to pick up prior to making any commitments to futures.