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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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July 2015 | Seamless Steel Tube & Pipe


Seamless producers cut prices to push sales: Americas Market Analysis


Into July, prices, especially for seamless material, fell strongly, shrinking the premiums of the higher grades over the carbon grades.

Through June, seamless OCTG market sentiment brightened modestly as it was believed at the time that the market – consumption-wise, at least – was nearing a bottom. April and May appeared to be the worst for domestic producers in terms of shipments as June was a marginally better month for shipments than the previous two months. Rig count stabilization also provided some indication of the end of the downturn, although a recovery was not yet in the offing. Nevertheless, pricing was still considered weak and likely not yet at the bottom with so much capacity idle or running at low levels.

But into July, prices, especially for seamless material, fell strongly, shrinking the premiums of the higher grades over the carbon grades. Fears of another oil price collapse, still-high inventories and imports outpacing domestic shipments have eroded sentiment further, causing steep price declines. Moreover, prices could be farther from a...

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