Research

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

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May 2019 | Welded steel tube & pipe


Welded prices exhibit steep drop in May: Americas Market Analysis


Domestic ERW linepipe prices are down about $50/tonne month-on-month in May as a result of the weakened fundamentals.

Floor in welded prices not yet reached
ERW OCTG and linepipe prices slid deeper than expected in May as the decline in drilling activity takes hold. Oil prices and rig counts are moving in opposite directions, with the number of rigs defying the rising oil prices. This is leading to declines in OCTG and gathering pipe demand. The reason for the reduced activity is that operators, especially small to mid-sized ones, are facing pressure from investors and shareholders to make or increase profits after years of rising debt levels to collect assets and raise production. Marginal wells and rigs are being idled as a result.

Domestic ERW linepipe prices are down about $50/tonne month-on-month in May as a result of the weakened fundamentals. Distributors have found themselves with excess inventory and are pushing prices down further on any subsequent purchases. Later in the year, they will look to destock at...

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