Line Pipe Prices Showing Effects Of OCTG Case Ruling
As expected, line pipe prices have increased slightly in wake of this summer’s OCTG case ruling by the DOC.The good news however, is that after a year to date high in July, they appear to have stabilized.
According to one source in the industry, domestic distributor prices rose approximately 0.2% per short ton, while foreign-sourced line pipe more than doubled that, at a 0.5% increase. Additionally, seamless line pipe also rose in average price by 0.3%, while welded remained static.
Specifically, Korean OCTG prices rose and eventually plateaued $1,020/NT for J55 tubing, and $960/NT for J55 casing. Both of these figures had been raised approximately $70-80/NT in an effort to cover the newly imposed 7-8% Anti-Dumping duties. Meanwhile, the Japanese market is running full of ERW, meaning hot band supply from the island nation into Korea may be constrained. Hot band prices in Korea and China do appear stable at the moment.
While these numbers appear minuscule, those in the steel industry understand their significant impact. Just these increases alone were enough to cause product prices to reach year-high figures. However, prices should continue to stabilize as both domestic and foreign suppliers adjust to the DOC’s tariffs. The long-term effects will begin to be realized in the coming months.