US line pipe prices declined again in October, Kallanish learns from market observer Pipe Logix.
Average US line pipe prices fell in October to $1,565/short ton, down -1.1% from September. Domestic prices fell -1% to $1,732/st, while import prices fell -1.3% to $1,398/st.
October marks the 15th consecutive month of line pipe price decreases.
“Key market drivers for line pipe demand are decreasing and are being met with declining line pipe supply,” Pipe Logix says. “The rig count is down -21% from the peak in December 2018, reflecting soft oil and gas prices in 2019. Total line pipe shipments have been cut in half since January 2019. Thus, the ratio of line pipe shipments to active rigs has decreased from a peak of 307 st/rig in January 2019 to 189 st/rig in September.”
This post appeared first on Kallanish Energy News.