It had looked like India might assume China's former position in the US pipe market as the low-priced import leader, but the Indian government had a different idea in mind.
The Indian government this week announced that it would impose export taxes on a wide array of steel products in order to curb further price increases for its domestic customers and encourage Indian producers to supply to the domestic market. Pipes did not escape; a 10 percent export tax for all steel pipe exports from India will go into effect within the next two weeks.
Import market players agree that this hefty tariff will likely take India out of the US' import pipe market or at least diminish their presence drastically. India had been exporting a good deal of competitively-priced pipes to the US in recent months, including welded standard pipe; however, the offers had started to slow down in recent weeks due to the short supplies of flat rolled coils in the region. Now, with the added barrier of an export tax, it would be very hard for India to continue exporting pipes at any significant quantities.
Traders say that other import sources include mostly Southeast Asian countries such as Malaysia, South Korea, Thailand, and Taiwan, as well as some countries either in or close to the Middle East like Oman and Turkey. The price range of $63.25 cwt. to $65.50 cwt. ($1,394 /mt to $1,444 /mt or $1,265 /nt to $1,310 /nt) FOB loaded truck in West and Gulf Coast ports still applies to the Asian offers, and the Turkish offers (though there are only limited quantities) are offered at the higher end of that price range in the Gulf. Due to the rising flat rolled prices worldwide, and with the lower-priced Indian offers soon to disappear from the picture, the import pipe pricing trend is on the up-slope.
Meanwhile, the antidumping investigations of line pipe imports from China and South Korea is underway, with the US Department of Commerce (DOC) announcing on April 24 its decision to initiate the investigations. The USITC's preliminary injury determinations are expected on May 18, and opinions vary as to whether or not the domestic mills will win the case. Traders say that China is still offering X42 pipe, but at sizes larger than those included within the scope of the investigation, at approximately $60.00 cwt. ($1,324 /mt or $1,200 /nt) FOB loaded truck in the Gulf for August-September shipment.
There are also some Chinese offers of A106 pipes which are priced even lower than welded pipes from other import sources. However, these imports are under some scrutiny, so they may not be around for much longer. A trader told SteelOrbis this week, "China could be slapped with antidumping soon on seamless galvanized. These imports may only be around for the short term."
As for the domestic welded pipe market, the immediately effective $200 /nt to $250 /nt ($10.00 cwt. to $12.50 cwt.) increases set by most domestic mills in mid-April have been accepted by buyers, who, despite what many characterize as "flat" demand, are tight on supplies because of the lack of import availability. With the price increase taking hold, new offers for A53 pipe from domestic mills range from approximately $71.00 cwt. to $72.00 cwt. ($1,543 /mt to $1,587 /mt or $1,400 /nt to $1,440 /nt) ex-mill. Since pipe mills need to recover their continually rising flat rolled costs, another domestic pipe price increase is expected for May.