The previously reported expectations that recently filed AD/CVD petitions against oil country tubular goods (OCTG) imports by US pipe producers will help firm import API X-42 electric resistance welded (ERW) line pipe sales prices in the US have sustained, although it is now believed prices will dip before they climb. Trader sources anticipate that offshore pipe mills named in the AD/CVD petitions will begin to aggressively quote line pipe to the US to make up for the hit they took following the trade case filing. In the short term, this will place downward pressure on import line pipe sales prices in the US--prices from Korea, Taiwan and Vietnam are already in the approximate range of $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt) DDP loaded truck in US Gulf ports. But if futures prices don’t eventually firm, may add fuel to rumors that a trade petition against import line pipe could also be imminent. Only time will tell if offshore mills will show restraint in offering deep discounts.
Meanwhile, US domestic API X-42 ERW line pipe prices have not wavered. The most commonly reported spot price range of $54.00-$55.00 cwt. ($1,191-$1,212/mt or $1,080-$1,100/nt) ex-Midwest mill is unchanged in the past week. At the same time, deals as much as $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below the average span are available to buyers who are looking to book larger tonnages, as they have been for months now. Lead times have held at about four weeks, and buyers say they are only placing orders to fill inventory gaps.