Research

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

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July 2016 | Seamless Steel Tube & Pipe


No relief expected in 2016: Americas Market Analysis


Linepipe prices in the USA have stepped back from June pricing as cost support retreated and seamless material faced competition from ERW sales.

Seamless OCTG prices largely remained unchanged into July as pressure mounts from excess supply on hand to retreating cost pressures. At this point, pricing is not budging from the perceived floor of around $980/tonne for seamless API 5CT J/K55 casing at distributors. Much of the material on hand in stocks was purchased at higher prices before the downturn and distributors have been mainly selling at a loss to move tonnage or maintain cash flows. Nevertheless, market participants do not expect prices to go much lower, even with import offers at steep discounts, but any mill price increases are forgotten by now.

Linepipe lost footing, however
Linepipe prices in the USA have stepped back from June pricing as cost support retreated and seamless material faced competition from ERW sales. Sales have been limited at best. Canadian seamless linepipe demand is non-existent as inventories at distributors and end-users is high.

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