Research

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

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July 2019 | Welded steel tube & pipe


Prices fall again, but margins could be squeezed through the end of the year: Americas Market Analysis


Given available US import data through May 2019, Fastmarkets MB research has found mixed results in the linepipe import markets following the imposition of anti-dumping duties and Section 232 tariffs.

OCTG and linepipe prices retreat again
Welded linepipe and OCTG prices took another downward turn in July, falling about $50/tonne for linepipe and $30/tonne for ERW OCTG. While the fundamentals for ERW linepipe and OCTG remain weak, the substrate markets have also been a drag on downstream pricing. Indeed, HR coil and plate prices hit multi-year lows at mid-year.

Nevertheless, substrate costs have now come off their floor with repeated mill price hikes, but the weak fundamentals in the pipe markets remain in place. For ERW OCTG, drilling activity continues to retreat and we have yet to witness any significant improvement in completion activity. Operators are holding firm to their reduced budgets for the year which will weigh on demand as supplies are more than ample.

The lack of completions continues to put pressure on ERW linepipe demand and ultimately prices. Imports have come off last year’s levels,...

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