(by Kurt Minnich, www.pipe-logix.com) Line pipe prices eased in January, down 0.5%. Prices for seamless import items increased 1% but were more than offset by decreases in prices for ERW imports and domestic items, down 1.9% and 1.5% respectively. The consolidated Pipe Logix Price index has declined 24% from the peak in July 2018 but the pace of price declines has slowed since September 2019 and there are some items that realized price gains in January. Distributor’s sentiment continues to improve with the NASPD Index at 55 in January, up from 47 the prior month, indicating a slightly expanding market environment. 40% of the Distributors now expect prices to increase in the near-term compared to none having such expectations between April 2019 and November 2019. Total line pipe shipments continue to decline with import volumes in December expected to have been below 100,000 tons for the third month in a row. A year ago, import volumes were over 200,000 tons. Drilling activity also continues to slow. The Baker Hughes rig count averaged 791 in January, down 26% from the peak a year ago. Thus, average line pipe shipments per active rig continues to be around 200 tons/rig, below the 5-year average of 260 tons/rig but still above the average prior to 2015.
Pipe Logix Line Pipe Report – Jan 2020
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
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- Email: sales@pipexch.com