Movers and shakers within the
US domestic and import oil country
tubular goods (OCTG) casing markets continue to have all eyes on oil prices, as a brief Tuesday rally in oil futures prices ended with a 33-cent drop. By the time the NYSE came to a close, crude barrel prices for January delivery fell to $55.61 per barrel. This comes on the heels of last week’s Bank of America report, which predicted oil prices would slide to $50 per barrel before all was said and done. The report went onto predict that while a rebound would be on the horizon, it would be unlikely to materialize until the second part of 2015, which could have a significant impact on domestic demand for pipe in the short-term.
“People are definitely worried,” according to one Midwest-based source. “At this point it’s a watch-and-wait situation which is being compounded with sluggish year-end activity, since half the
US is on vacation until after the New Year.”
And while oil pricing continues to be volatile, spot market pricing for
US unfinished J55 ERW OCTG casing has so far remained steady; the most commonly reported spot price range continues to hold at $59.00-$61.00 cwt. ($1,300-$1344/mt or $1,180-$1,220/nt) ex-Midwest mill, and until oil prices make a substantial dent in demand, the range should stay stable.
Meanwhile, futures offer prices from Korean producers for unfinished J55 ERW OCTG casing are also lateral, at $49.00-$50.00 cwt. ($49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in
US Gulf coast ports, while Taiwanese offers are also steady and remain in the approximate range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt), DDP loaded truck in
US Gulf coast ports.