US standard pipe market not immune to downward pressure

Wednesday, 22 May 2019 00:02:55 (GMT+3)   |   San Diego
       

Spot market pricing for pipe and tubular products in the United States has endured significant downward pressure in recent weeks; falling US HRC prices coupled with this month’s slide in scrap pricing have made it difficult for mills to keep prior price points stable.

“The entire market is soft; flat rolled, pipe, you name it,” a source said.

Not surprisingly, the current spot market price transaction range for A53 Grade B ERW BPE standard pipe has endured downward revisions in the past 30 days, and many speculate that todays’ pricing, which has fallen from $52.50-$53.50 cwt. ($1,157-$1,179/mt or $1,050-$1,070/nt), ex-mill, to $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt), ex-mill, may endure additional downticks before bottoming out, especially considering that some sources have indicated “customers who are willing to put their tons where their mouth is, aren’t having any problems getting deals.”

As such, sellers say that buyers have been reluctant to place bulk purchases out of concern that prices may continue to erode.

 


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