US pipe prices were steady to lower this week, even as flat steel prices were seen creeping higher and pipe imports were reported lower, pipe market insiders told SteelOrbis this week.
Following three weeks of steady pricing, the SteelOrbis spot average for hot-rolled coils (HRC) was a bit higher this past week at $670-772/nt ($739-772/mt), or $33.50-35.00/cwt., up from $660-680/nt ($728-750/mt), or $33.00-34.00/cwt. Lead times for HRC are reported steady at 4-6 weeks, insiders said, indicating markets remain well supplied amid limited new spot market requirements thus far in November. December US scrap pricing is last discussed sideways to November, though the markets could be poised to move higher given recent cold weather and snow in the US Midwest and Northeast.
Flat steel traders recently told SteelOrbis that HRC prices could increase by $100/nt over the next several weeks following the recent November 5 Trump presidential victory, as imports are expected to decline as a result of increased tariffs on imported steel products.
“OCTG prices are basically flat to several weeks ago,” said one US Gulf Coast pipe trader. “As Trump begins his transition toward the White House, the problem with his policy of ‘drill baby drill’ is that as oil prices decline below the $65.00 a barrel level, drillers will stop drilling because there won’t be any margin left on the transactions.”
West Texas Intermediate crude oil at Cushing, Oklahoma, last traded at $69.46/bbl, up 3.16 percent from Friday, November 22, though down 9.17 percent from one year ago.
US domestic J55 OCTG casing pipe pricing is assessed at $1,300-1,400/nt ($1,433-1,543/mt), or $67.50-70.00/cwt, unchanged from two weeks earlier.
According to final census data from the US Department of Commerce, US imports of standard pipe totaled 55,027 mt in September of this year, down 16.2 percent from August and 2.6 percent less than one year ago.
In the Standard ERW pipe market, market insiders say mills continue to discount pricing to grab market share and maintain cash flow.
“We are still seeing the mills being pretty aggressive on the pricing front,” said another Midwest pipe market insider. “Import offers are still pretty flat at $1,100 a ton, and domestic mills are discounting below that.”
Standard ERW pricing on an ex-mill US Midwest basis is assessed at $1,070-$1,150/nt ($1,179-1,268/mt), or $53.50-57.50/cwt., off from earlier assessments at $1,250-1,300/nt ($1,377-1,433/mt), or $62.50-65.00/cwt.
In the HSS markets, hollow sections on an ex-mill US Midwest basis are assessed on average, unchanged at $1,150/nt ($1,268/mt), or $57.50/cwt.
On the drilling side, Baker Hughes reports number of active drilling rigs on the US Gulf Coast at 583 rigs, down 1 rig from a week earlier, and 39 less rigs than the equivalent week in 2023.
