(by Kurt Minnich, www.pipe-logix.com) Line pipe prices decreased $31/ton or 1.9% in September with prices for domestic items down 1.4% and import items down 2.6%. All of the items tracked by Pipe Logix decreased in September. The Pipe Logix Index is now $1,582/ton, down 20% from a year ago. Distributor’s sentiment continues to point to a deeply contracting market place with the NASPD Index scoring 31 in September compared to 34 the previous month. Import volumes and inventory direction are positive components to the index with all other components scoring below 30. Reported shipment volumes of imported line pipe are decreasing with the trailing average down 4% and August volumes expected to have been down 10% from the previous month. However, domestic shipments have been increasing with ERW shipments up 32%, and along with increases for seamless and SAW shipments, have more than offset the declines in import volumes. The Baker Hughes rig count averaged 878 active rigs in September, down 18% from the peak in December 2018. The ratio of shipment volumes per active rig have averaged near 250 ton/rig for the trailing two years.
Pipe Logix Line Pipe Report – Sep 2019
Pipe Exchange
14025 West Road
Suite 100
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