(by Kurt Minnich, www.pipe-logix.com) Line pipe prices declined 0.5% in October mostly due to a decline in ERW items; both domestic and imports. The Pipe Logix Index was $1,964/ton in October, down 2% from the August peak but up 26% compared to a year ago. Distributor’s sentiment eased further in October with the NASPD Index at 45 compared to 47 the previous month. The reading below 50 suggest the market is contracting slightly. Most components of the index are near 50, a neutral sentiment, except for new orders and the price outlook; both of which are 38, which is a contracting market indicator. Reported domestic shipments were higher than expected in August, double the volumes of the previous month. Import volumes were slightly lower in August and are expected to have declined significantly in September, to about half the level witnessed a year ago. The rig count increased to 1,063 active rigs in October, which, with lower shipments, should cause the ratio of line pipe supply to rigs to fall to a 3-year low.
Pipe Logix Line Pipe Report – October 2018
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
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- Email: sales@pipexch.com