Downtrending scrap prices during the June buy cycle have done little to help US HRC prices, which have “failed to do any favors for the line pipe market.”
As of Friday morning, SteelOrbis has learned that US scrap prices have not, as previously expected, settled sideways, but instead revised downward in the range of $20-$30/gt, depending on the grade and region. This, according to US HRC market sources, has many believing that the price floor for hot rolled coil prices has yet to be reached.
This week’s oil rig count, which has fallen to its lowest level since February 2018, has also helped place downward pressure on the market.
“All of this has caused reductions in pipe prices,” a source noted, adding that last week’s domestic price range for API X-52 line pipe, which was recorded at $60-$62 cwt. ($1,323-$1,367/mt or $1,200-$1,240/nt), ex-mill, has eroded sharply to an average of $56-$59 cwt. ($1,235-$1,301/mt or $1,120-$1,180/nt), ex-mill, although deals below this range are readily available based on volume.
“We’ve seen prices as low as $54.00-$57.50 cwt. ($1,191-$1,268/mt or $1,080-$1,150/nt) for up to 16-inch and maybe $59.50 cwt. ($1,311/mt or $1,150/nt) for 20-inch,” a source said. “There is no such thing as an average price because pricing is all over the map.”