(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor <= 16” Diameter – Small diameter line pipe shipments remain above the level of demand, adding to inventory, based on the last few months of data. Last month we noted that imports had lost share when compared to the same YTD period last year but so far this year, some of that share has been regained. While May shipments include import licenses for products that were largely ordered prior to the effects of Covid-19 and the oil price war, imports so far this year have been variable but, on average have remained flat. Monthly domestic shipments have fallen by about 8,000 – 9,000 tons when comparing the Jan/Mar average to the April/May average. Two factors explain this. First; HRB prices started to increase in November and continued through January putting upward pressure on domestic line pipe prices & second; it is, of course, typical for the shorter supply chain to feel the effects sooner from a shift in demand. We would expect small diameter line pipe shipments to decline further in the coming months. >16” Diameter – On June 9, the Federal Energy Regulatory Commission (FERC) implemented a rule designed to protect stakeholders, including landowners, by amending its regulations, so that construction of an approved natural gas project cannot proceed until the Commission acts on a request for rehearing. The rule states that even if a project has all other certifications and permissions to begin construction, it must wait to do so until the Commission either acts on the rehearing request or the 30-day time limit passes with no requests for rehearing.
Preston Pipe Report – The Line Pipe Market Jun 2020
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com