The most commonly reported spot market price transaction range for US domestic Grade A ERW BPE standard pipe has firmed in the past two weeks. In early January, spot market prices were trending between $48-$50 cwt. ($1058-$1102/mt or $960-$1000/nt), ex- mill; today prices have firmed by $1.00 cwt. ($22/mt or $20/nt), to $49-$51 cwt. ($1080-$1124/mt or $980-$1020/nt), ex-mill.
The price upticks are directly attributed to higher prices for both US domestic scrap and US domestic hot rolled coil. Some believe that current market conditions, which point to pricing uptrends for the first and second quarter, will be detrimental to those who wish to “play the spot market” and, as such, some buyers are choosing to place larger-sized orders in hopes of locking in tonnages at current price points, in advance of additional price increases.