(by Kurt Minnich, www.pipe-logix.com) Line pipe prices were 1.1% lower in October compared to the previous month with domestic prices down 1% and import prices down 1.3%. All items tracked by Pipe Logix priced lower in October. This marks the 15th month of price declines in the Pipe Logix Index for a cumulative decline of 22% since July 2018. Distributor’s sentiment continues to portray a contracting market with the NASPD Index scoring 33 in October, relatively unchanged from the previous 2 months. Several key components of the NASPD Index remain bearish; including, the Price Outlook and New Orders. However, sentiment about inventories has improved with the Inventory Direction component now markedly expanding. Key market drivers for line pipe demand are decreasing and are being met with declining line pipe supply. The rig count is down 21% from the peak in December 2018 reflecting soft oil and gas prices in 2019. Total line pipe shipments have been cut in half since January 2019. Thus, the ratio of line pipe shipments to active rigs has decreased from a peak of 307 tons/rig in January 2019 to 189 tons/rig in September.
Pipe Logix Line Pipe Report – Oct 2019
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com