Cheap oil prices and sluggish drilling activity has both the US domestic and import API-X42 ERW line pipe markets trending slow. Sources close to SteelOrbis say they’re “writing off” the rest of 2015 and are hopeful that activity will pick up after the New Year. The market is also winding down in advance of the close of 2016, as many will be taking extra time off at the end of this month due to the Thanksgiving holiday. December is also a historically slow month due to the end-of-year holiday season.
In terms of pricing, as with last week, all published pricing is flexible. US domestic, ex-Midwest mill spot pricing for API-X42 ERW line pipe continues to trend sideways in the approximate range of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt), ex-Midwest mill; futures offer prices from Taiwanese producers are also lateral since our last report a week ago, at approximately $25.50-$26.50 cwt. ($562-$584/mt or $510-$530/nt), DDP loaded truck in US Gulf coast ports, while futures from Korean producers continue to be offered at approximately $2.00 cwt. ($44/mt or $40/nt) below Taiwanese offer prices.