US domestic pipe prices were little changed this past week as uncertainty around steel and aluminum tariffs and the recent lack of an interest rate cut from the US Federal Reserve continues to limit spot market action, market insiders told SteelOrbis this week.
At present, Section 232 steel and aluminum tariffs remain assessed at 50 percent on all imports into the US with the exception of the UK, who’s tariffs were recently renegotiated to 25 percent. The US imports about 51 percent of the steel used domestically, mostly of it from Canada, Brazil and Mexico.
The current federal funds overnight lending rate stands at 4.33 percent, a rate that the US Federal Reserve has kept steady since its last meeting July 24 in order to control inflation. Market insiders say the lack of a substantial interest rate cut continues to limit long-term investment in pipeline and building infrastructure projects.
In the US weekly pipe markets, US domestic J55 OCTG casing for carbon-grade material on an FOB mill basis is discussed steady in thin trade at $1,420/nt, ($1,565/mt) or $71.00/cwt., while standard ERW pipe on an ex-mill US Midwest basis is discussed on average stable at $1,500/nt ($1,653/mt), or $75.00/cwt.
In the hollow sections market, US Midwest ex-mill HSS is discussed unchanged at $81.50-$85.00/cwt., or $1,630-$1,700/nt ($1,797-$1,874/mt).
“The current pipe outlook remains pretty flat,” remarked one US Gulf Coast pipe trader. “We don’t expect too much movement either way up or down because since this time last year, the pipe trading business is down about 20 percent as a result of high interest rates and uncertainty over tariff levels.”
Earlier this year, pipe traders told SteelOrbis that pipe prices were on the rise because of higher scrap pricing and HRC values. At current, August scrap pricing is seen sideways to potentially higher, insiders said, the result of potential increased prices expected for Brazilian pig iron exports, recently subject to 50 percent tariffs by the Trump administration. Flat steel prices are currently on the rise, with most repeatable transactions discussed up $10/nt at $870/nt ($959/mt), or $43.50/cwt.
