US OCTG market prices hold steady amidst lagging order activity
Date:2015-11-20 Views:528Time(s) Label:US OCTG market prices hold steady amidst lagging order activity
According to the most recent data from Baker Hughes, the number of US rotary rigs drilling for oil declined by 16 additional rigs last week, bringing the current number of US rigs drilling for oil to 578. This decline comes on the heels of a one-rig count drop seen theweek prior, and a 10-rig drop that took place the week before that. Year-on-year oil exploration in the US is down by more than 63.5 percent; the current oil rig count marks a year-on-year decline of 1,104.
None of this is good news for the US domestic and import J55 electric resistance weld (ERW) oil country tubular goods (OCTG) casing markets and sources close to us say that market activity is all but dead. Prices are steady, sources say, with US domestic spot prices for finished J55 ERW OCTG casing holding at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt), ex-Midwest mill, while published futures offer prices from Korean producers have also trended sideways in the approximate range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck US Gulf Coast ports, but anyone who is looking tons can easily bid to beat those numbers. “No one is buying anything right now so it really doesn’t matter what the price is,” sources say.