The American division of Korean steelmaker SeAH is seeking an exemption on OCTG import quotas; industry sources have indicated that the company submitted a request to the US Department of Commerce on June 11. As part of the request, SeAH America asked for permission to ship 135,000 tons of OCTG casing and tubing to US ports.
The American arm of SeAH was established in 2016 after the company acquired a Texas-based mill. That mill, representatives said, is not large enough to meet current US demand and thus, the American arm still relies on imports as a means of fulfilling orders.
A $25 million expansion plan is still in the works, company representatives said, adding that if they are not adequately able to fulfill orders until that expansion is fully approved and completed, 178 US-based jobs will be at risk.
It’s not immediately clear whether the US DOC will be agreeable to the request, but multiple sources close to SteelOrbis have indicated that having access to additional US import OCTG casing and tubing from Korea would be of great help in Q3 and Q4, when shortages are expected to emerge.
Pricing for “on the ground” import J55 ERW OCTG casing from Korea is still being heard at approximately $65 cwt. ($1433/mt or $1300/nt), DDP loaded truck US Gulf coast ports, and sources say material is running out quickly.
Meanwhile, pricing for US domestic J55 ERW OCTG casing continues to trend between $60-$70 cwt. ($1323-$1543/mt or $1200-$1400/nt), ex-mill, although as with last week, prices are still climbing within that range.