Sources close to SteelOrbis have indicated that
US domestic J55 electric resistance welded (ERW) oil country
tubular goods (OCTG) casing buyers are beginning to question whether recent softening within the domestic flat rolled market will soon impact OCTG spot prices. Flats mills announced two increases over the summer, one in July and another in August, but were only able to collect a fraction of the attempted $4.00 cwt. ($88/mt or $80/nt) in increases. Although those increases never translated into higher OCTG casing prices, the recent pricing tumble in the flat rolled market has buyers questioning if and when OCTG prices will begin to decline as a result. For now, though, J55 ERW OCTG casing spot prices are still being seen in the range of $63.00-$65.00 cwt. ($1,389-$1,433/mt or $1,260-$1,300/nt) ex-Midwest mill, reflecting no change since our last report a week ago.
Shifting focus offshore, it appears that import offers on J55 ERW OCTG casing from
Korea,
Vietnam and
Taiwan have stabilized since our last report a week ago and remain in the range of range of $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in
US Gulf ports. Of greatest note is the increasing chatter as to whether the long talked about antidumping suit against
Korea will soon be filed. Although this speculation has been going on for several years now, traders are beginning to think “where there is smoke, there is fire.” That suit may also impact
Vietnam and
Taiwan as import pricing from those countries is on par with
Korea. For now, though, it’s a “watch and wait” situation, with many wondering if the rumors will come to fruition.