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

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January 2020 | Welded steel tube & pipe


Price slide comes to an end: Americas Market Analysis


While the market sentiment is accepting the higher prices on the basis of costs, the fundamentals remain in question and a second-quarter slide could be in the offing if substrate prices do not hold their position.

ERW linepipe pricing rebounds, but for how long?
ERW linepipe prices posted positive gains in January, after sliding for most the previous year. Domestic-origin material is generally up about $20/short ton from the end of 2019, mainly the result of higher HR coil prices cutting into producers margins. Import prices are up a stronger $40-60/ton as a result of mills looking to recoup costs.

While the market sentiment is accepting the higher prices on the basis of costs, the fundamentals remain in question and a second-quarter slide could be in the offing if substrate prices do not hold their position. Indeed, the demand situation looks to be similar to 2019 levels, with no substantial rebound expected. The anticipated economic effect of the Wuhan coronavirus in China, while projected to be temporary, has knocked on to energy demand expectations and ultimately global oil prices. Thus, completions, which had picked...

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