(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor <= 16” Diameter – In the small diameter line pipe market, our industry contacts tell us that most projects are on hold. This is largely confirmed by shipment levels that are basically just maintenance driven. The last time small diameter shipments were this low was in late ’15 / early ’16 and, prior to that, 2H2009. Imported line pipe, >4 ½” – 16”, carbon welded, was $515/ton in July (not including duties or tariffs), which represents a cycle low point so far. >16” Diameter – FERC currently has two vacancies. Trump nominees Mark Christie (Republican), currently of the Virginia State Corporation Commission, and Allison Clements (Democrat), an industry consultant who formerly worked for the Natural Resource Defense Council, are undergoing confirmation. The remaining commissioners are made up of two Republicans and one Democrat. Currently the FERC doesn’t consider the environmental impact of new natural gas pipeline projects but environmental advocates, and the FERC’s lone Democrat suggest that it is within their responsibility to do so. Trump’s nominees, in response to confirmation questions, basically said they would do what they were supposed to do as a FERC commissioner bringing us back full circle to the question of whether or not FERC is supposed to be evaluating projects in that manner. With an election coming up, this could be a key issue. There is no shortage of press on the topic of pipelines after Covid and the expected change to our energy mix that is supposedly accelerating. We have three great speakers on the topic of pipeline activity scheduled for our conference – very timely it seems. Import Supply – The July import total was 55,583 tons which is about 4,000 tons above the license tally from last month. August import licenses are back up to 73,520 tons. The September forecast, with 10 of 21 days summed, is back down by half to 38,489 tons. The big import item for the month of July 2020 was Carbon ERW over 4 ½” not over 16” OD, with 11,344 tons, a big drop from June. The price was $585/ton. This price is down another $15/ton. This is a drop in price of $119/ton in two months time.
Preston Pipe Report – The Line Pipe Market – September 2020
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