U.S. energy tubular pricing remains in a rut despite skelp prices creeping upwards, Kallanish, sister publication of Kallanish Energy, learns from market sources.
(Skelp is wrought iron or steel rolled or forged into narrow strips and ready to be made into pipe or tubing by being bent and welded.)
Kallanish held its representative oil country tubular goods price for P110 domestic welded casing Friday at $,1050-1,100/short ton. All prices are ex-works, domestic mill.
Line pipe prices also remain pressured, largely due to a lack of demand, said one Gulf Coast buyer.
“Nothing has changed in substance,” he says. “Industry will try everything they can to make activity different, but it won’t move the needle one bit. There is a total lack of activity, so demand for everything in the oil patch is down.”
In some cases, he said, the problem originates within the paper market – far from the actual drilling locations.
“The worst part – and the most important part – is shareholders demanding operators stop spending money on drilling and pay profits as dividends,” the buyer said. “That controls everything.”
This post appeared first on Kallanish Energy News.