US domestic pipe prices were reported sharply lower this week as US flat steel prices may have found bottom, and the US rig count remains sharply lower than levels seen one year ago.
According to Baker Hughes, the number of US drilling rigs stood at 589 for the week ended July 26, up by three, though still 11.3 percent less than the 664 rigs reported for the equivalent week in 2023. Market insiders told SteelOrbis that the reduced year-on-year rig count is partly the result of recent political decisions that have reduced the amount of drilling activity, creating a lower demand for finished and unfinished steel pipes.
“The markets are historically awful right now because of the low rig count and the fact that there’s also a fair amount of inventory around,” one US Gulf Coast pipe market insider told SteelOrbis.
US domestic J55 ERW OCTG casing is discussed 5.06 percent less than a week ago at $60-62/cwt. ($1,200-1,240/nt or $1,323-1,367/mt), FOB mill, versus previous assessments at $64-64.50/cwt. ($1,280-1,290/nt or $1,411-1,422/mt).
In other pipe markets, standard eight-inch and below ERW pipe, on an ex-mill basis is discussed 13.5 percent less than a week ago at $56-56.50/cwt. ($1,120-1,130/nt or $ $1,235-1,246/mt) compared with previous assessments reported to SteelOrbis at $64.50-$65.50/cwt. ($1,290-1,310/nt or $1,422-1,444/mt). Ten-inch and above standard ERW pipe is discussed 10.38 percent lower at $57.50-$59.00/cwt. ($1,150-1,180/nt or $1,268-1,301/mt).
“Market activity has kind of increased over the last week, so if we can make it through August, it could really start to pick up,” said another steel pipe market insider. “We’ve got a fair amount of LNG (liquefied natural gas) plants coming online in 2025, and that could really help the pipe business.”
In the hollow sections pipe market, HSS steel pipe is discussed steady at $52-$54/cwt. ex-mill US Midwest ($1,040-1,080/nt or $1,146-1,191/mt). HSS tubing prices continue to be depressed because limited demand is prompting steel mills to compete with each other for whatever limited new business is available, market insiders told SteelOrbis this week.
HSS market contacts say that pricing in the tube markets continues to be influenced by movement in the flat steel markets which have recently bottomed at $32.50-$33.00/cwt. ($650-660/nt or $717-728/mt), on a delivered to customer basis, SteelOrbis data shows. Prices, they said, could be staged for an increase in the near term.
On July 29, US steelmaker Nucor announced the first price increase for hot-rolled coils since May 20, increasing its price by $25/nt ($28/mt) to $675/nt ($744/mt) FOB mill. Market insiders said August scrap pricing seen sideways to $20/gt ($20/mt) higher on a delivered-to-mill basis across all grades was largely behind the Nucor price increase.
The steelmaker said in a letter to its customers, “While a surge in dumped and subsidized flat rolled imports during the first half of 2024 affected our pricing, we are currently experiencing higher raw material prices, and have recently seen increased order entries reflecting our customers’ resilient underlying demand.”