The slow on-going recovery for US steel prices is unlikely to affect the oil country tubular goods market for the foreseeable future, Kallanish hears from market sources.
While skelp is posting steady gains on the back of domestic mill increases, real demand is holding all energy tubulars back, says one Gulf Coast trader.
Kallanish held its representative P110 domestic welded casing price Friday at $1,175-1,200/short ton. All prices are ex-works, domestic mill.
“Flat-roll hitting bottom has been a positive for sure,” he says. “But paired with the continuing decline in rig count and projected cuts in cap ex, we still have a big bear market. So, no price recovery yet.”
|Price Series||5 July 2019||12 July 2019||19 July 2019||26 July 2019|
|OCTG 5.5″ dia (FOB Short ton)||1175-1200||1175-1200||1175-1200||1175-1200|
|Welded tubes & pipes (Ex-Works Short ton)||940-960||940-960||940-960||950-970|
This post appeared first on Kallanish Energy News.