Posted on 18 Oct 2024
Pricing for domestically produced OCTG in the US is flat this week, but Kallanish understands that a sharp increase is coming soon.
The spot price range for welded P110 5.5-inch casing is unchanged week-on-week at $1,650-1,700/short ton, according to market participants.
On Wednesday, Vallourec issued a notification to its OCTG customers, informing them that prices will increase by $150/short ton for first-quarter 2025 deliveries.
A Texas-based distributor source says the note is causing customers in need of 13-inch-diameter OCTG to scramble as supplies of that product are diminishing and lead times are increasing. The source contends that supply of P110 5.5-inch casing is still ample. However, the item's long pricing slump may be over.
“We definitely saw the bottom of the two-year drop. Now, if the increases will stick, I don’t know,” says the Texas distributor.
Another distributor along the Gulf Coast confirms that prices are holding steady and are primed for a turnaround, especially in light of political conversations surrounding potential new tariffs by either presidential candidate (see Kallanish passim).
“When tariffs are applied to imports, all prices eventually rise. The domestics benefit from some early volume loading, but they can’t resist the pricing opportunity provided by the tariff umbrella,” explains the second distributor.
When asked directly about whether P110 5.5-inch casing had hit its pricing bottom, the second distributor says: “Yep!”
In the equivalent week of 2023, P110 5.5-inch casing was in a range of $2,000-2,100/st.
All prices are ex-works domestic mill.
Source:Kallanish
