Global oil production continues to outpace demand, and reports that Iranian oil producers intend to hit the ground running once oil export sanctions are removed are a vast concern for the
US domestic J55 ERW OCTG casing market. Official prices may be unchanged since our last report a week ago, with
US domestic spot prices for finished J55 ERW OCTG casing holding at approximately $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), ex-Midwest mill, while futures offers for unfinished J55 electric resistance weld (ERW) oil country
tubular goods (OCTG) casing from Korea and the Philippines remain steady at $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt), DDP loaded truck
US Gulf Coast ports, but trader sources, along with service center sources, report that there “really isn’t any sort of average transaction price because people just aren’t buying. The market is a mess right now, and until oil prices begin to stabilize the OCTG market will continue to suffer.”