US domestic pipe prices continued higher this week amid continued reports that steel suppliers in the US continue to build inventory-much of it used to make pipe- ahead of proposed 25 percent import tariffs by the US Trump administration.
US domestic J55 OCTG casing for carbon-grade material on an FOB mill basis is discussed at $1,500/nt ($1,653/mt or $75.00/cwt.), up from earlier assessments on average $1,450/nt ($1,598/mt or $72.50/cwt.).
“Tariffs are causing some concern in the markets, and as a result, pipe prices are continuing to climb,” one Gulf Coast pipe trader told SteelOrbis. “It’s a crazy market right now,” quipped another Gulf Coast flat steel trader. “I think recent price increases across the steel complex could have some legs because of tariffs short term, with prices likely to continue higher,” he said. “However, because this market right now is largely fear-driven, prices could decline precipitously just as quickly as they have risen.”
Standard ERW pipe on an ex-mill US Midwest basis is discussed on average at $1,260/nt ($1,389/mt or $63.00/cwt), up from $1,080-1,170/nt ($1,190-1,290/mt) in earlier assessments.
In the hollow sections market, US Midwest ex-mill HSS is discussed at $1,160-1,250/nt ($1,279-1,378/mt), or $58.00-62.50/cwt., up from $1,150/nt ($1,268/mt) or $57.50/cwt., pipe insiders told SteelOrbis.
Earlier in February, pipe traders told SteelOrbis prices were on the rise because of higher scrap pricing and HRC values. March shredded scrap delivered to customers in the vicinity of Chicago is last reported at $30-40/gt ($30-41/mt) premiums to February scrap pricing, or $465-470/gt ($472-477/mt), scrap insiders said. Since the beginning of 2025, hot-rolled coil pricing from steelmaker Nucor has risen nearly 15 percent, with Nucor now offering spot HRC this week at $860/nt ($948/mt), or $43.00/cwt.
Earlier this week, Trump indicated that proposed all-inclusive 25 percent import tariffs on Canada and Mexico would proceed as planned, following a 30-day delay on March 4, though at a televised cabinet meeting on February 26, Trump said the tariffs would likely go into effect on April 2. While some insiders said Trump may have misspoke and may have been referring to the start of reciprocal tariffs on April 2, it remains unclear to many, as to when and if tariffs will go into effect, though threatened 10 percent tariffs on trade flows from China into the US already have been implemented for nearly a month.
In 2024, data suggests that Canada and Mexico supplied about 42 percent of all flat steel imports into the US. The US Department of Commerce estimates that about 10 percent of all steel scrap consumed yearly in the US comes from the two US’ two major trading partners now subject to 25 percent export tariffs.
On the drilling side, weekly data from Houston, Texas-based Baker Hughes indicates the number of active US rotary drilling rigs rose by four to 592 rigs, 33 rigs less than at the same time one year ago. Canadian rigs declined by one rig to 244 rigs, up 13 rigs from one year earlier.