US domestic pipe values were reported on the rise this week, following a long period of depressed pricing, fueled by recent increases in flat steel prices, pipe market insiders told SteelOrbis this week.
US domestic J55 ERW OCTG casing carbon grade material is discussed at $1,200-1,400/nt ($1,323-1,543/mt) or $60.00-70.00/cwt, up from previous assessments at $60-62/cwt. ($1,200-1,240/nt or $1,323-1,367/mt), FOB mill.
“The industry is so volatile that it’s difficult to forecast where prices are headed, but supply, which has recently been high, is coming more into balance with demand,” said one Gulf Coast pipe insider.
This week, SteelOrbis assessed spot HRC up $15.50/nt ($17.09/mt) to an average $722.50/nt ($796.42/mt), mostly in reaction to recent finished steel price spikes in overseas spot markets and reduced domestic flat steel availability as a reported 16 mostly flat rolled steel mills remain shut for planned maintenance outages during October.
“Flat steel prices are starting to advance, so we’re seeing some higher prices out there in the pipe market,” said one pipe market insider. “When coil prices rise, we’ve got to increase the price of our pipe to keep up with it.”
When asked whether pricing could continue higher in the near term, market insiders said it will depend on the outlook for flat steel, also, many are waiting for the results of the November presidential election, they said.
“We’re expecting sales to be better next year than this year,” he said. “A lot of people are waiting on the election results to start their projects. They don’t want to buy their pipe, and have the project shut down.”