Year-on-year oil exploration in the US may still be down by 59 percent but the most recent data from Baker Hughes indicates that for the week of July 3, the number of rigs drilling for oil increased by 12. This is the first increase in oil drilling seen this year. Although one week of gains is hardly enough to spur marked activity within the US domestic and import J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing markets, the uptick is seen by many as a sign of good news.
Sources close to SteelOrbis continue to report there is still quite a bit of inventory on the ground, but some trader sources say they have seen an increase in inquiries in recent weeks, although order activity has remained flat. Futures prices for unfinished J55 ERW OCTG casing from Korean producers are unchanged week-on-week, as new offers continue to hold in the approximate range of $39.00-$40.00 cwt.
($861-$882/mt or $780-$800/nt), DDP loaded truck in US Gulf coast ports. Unfinished on-the-ground Korean OCTG casing is also still available in Texas at slightly below that range. Futures offer prices from the Philippines is also newly available, at approximately $38.50-$39.00 cwt. ($849-$860/mt or $770-$780/nt), DDP loaded truck in US Gulf coast ports. In terms of the US domestic market, spot prices for finished J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing is also unchanged week-on-week at $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt), ex-Midwest mill.