Research

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

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December 2018 | Welded steel tube & pipe


Linepipe demand firm, but destocking and substrate slide weighing on prices: Americas Market Analysis


Tendering and purchasing activity in the large-diameter linepipe market picked up through the year with projects locking in capacity at the mills while order books were still open.

Prices end year slightly lower
Welded linepipe prices displayed weakness in the ending weeks of 2018, signaling more seasonal factors than an actual market correction. Indeed, the large-diameter linepipe market is on an upswing with project work increasing and tariffs and duties keeping imports constrained.

The price weakness is largely the result of seasonal factors and weaker substrate prices. The stock build of ERW linepipe in the early part of 2018 lead to a prolonged inventory drawdown in the second half of the year. By the fourth quarter, distributors shun building inventories to avoid the year-end tax charges. Meanwhile, HR coil prices are still seeking a floor as lead times are down to three to four weeks and mills are looking to make deals to satisfy capacity.

Large-diameter market picking up speed

Tendering and purchasing activity in the large-diameter linepipe market picked up through the year with projects locking in...

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