Both the domestic and import
pipe markets continue to improve this spring along with soaring flat rolled prices worldwide.
Since last month, import
pipe offers have improved by about $30 /nt to $40 /nt ($1.50 cwt. to $2.00 cwt. or $33 /mt to $44 /mt) with Chinese prices for A53 standard
pipe now ranging from $590 /nt to $630 /nt ($29.50 cwt. to $31.50 cwt. or $651 /mt to $694 /mt) FOB loaded-truck, Houston and Tampa, and prices from other
pipe-exporting countries ranging from about $670 /nt to $710 /nt ($33.50 cwt. to $35.50 cwt. or $739 /mt to $783 /mt) FOB, loaded-truck, Houston and Tampa. Subject product is ASTM A53 Grade A, ½ through 6".
Larger diameter
pipe (8" and up) from
China has also gone up since there is less competition. These pipes are transported with higher
freight rates. Offers for large diameter from
China to the West Coast or from
China to the Gulf are going for approximately $680 /nt to $700 /nt ($34.00 cwt. to $35.00 cwt. or $750 /mt to $772 /mt) FOB loaded-truck at discharge ports.
The main reason for these increases is the large increases we've been seeing in the Chinese, East Asian, and European flat rolled markets.
Turkish mills, however, are not offering much
pipe for export because the flat rolled market in the Black Sea region has been too unpredictable, with no telling just how high prices are going to rise.
The amount of
pipe imports coming into the US was up in March and is up in April. US government data shows that the top five countries the US imported standard
pipe from in March 2006 were:
Canada, 34'425 mt;
China, 29'736 mt;
Thailand, 13'715 mt;
India, 7'938 mt; and
Mexico, 6'092 mt.
Although more and more imports are coming in to the US, the pricing trend for domestic
pipe is still up because of strong demand for
pipe, both for
construction and oil-related applications, and also because of the upward trend for the US flat rolled market. Domestic offers for A53 standard range from around $900 /nt ($45.00 cwt. or $992 /mt) and API pipes are pushing $1000 /nt ($45.00 cwt. to $50.00 cwt. or $992 /mt to $1102 /mt) with more increases expected for May and June. As a matter of fact, most
pipe mills have announced price increases for $60 /nt ($3.00 cwt. or $66 /mt) for June deliveries.
The recent Sunset Review determination terminated duties on small diameter seamless
pipe from the Czech Republic and South
Africa as well as large diameter seamless
pipe from
Mexico. This decision could potentially impact the seamless market, but high oil prices which create high demand for seamless
pipe will most likely counteract the negative impact of increased imports from these countries.