January 2012 | Seamless Steel Tube & Pipe
Cost increases may prompt further price hikes: Americas Market Analysis
Market players continue to be bullish over the prospects for pipe and tubing demand out of the shale areas.
Seamless OCTG pricing held relatively steady into January, with prices standing at around $1,675-1,700/tonne for API 5CT J/K55 material in early January. Mills did announce price increases effective January 1, but these hikes are finding varied success so far. As has been the case over the previous year, higher-grade alloy products, such as API 5CT L80 and API 5CT P110 and higher, are in shorter supply than the carbon products and mills are finding stable footing on which to raise prices. Sales of the carbon steel J, K and N grades are more competitive and vulnerable to discounting. Meanwhile, scrap prices continued on the rebound that started in December, adding further encouragement for mills to boost prices. Since reaching a short-term trough in November, US domestic scrap prices rebounded in both December and at the start of January, reaching levels not seen since January 2011. The $65/l.ton increase in prices...
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