(by Kurt Minnich, www.pipe-logix.com) Line pipe prices were down $4/ton or 0.3% in September with a 0.2% gain in domestic prices being more than offset by a 1.0% decline in import prices. Half of the 18 domestic items tracked in the Pipe Logix Index priced higher in September while two-thirds of the import items priced lower. Price momentum has steadily improved from a low of -4.2% in April 2020 to the current -0.3%. Distributors sentiment continues to improve as the NASPD Index climbed to 50 in September, up from 35 the previous month. This sentiment score indicates the market has entered neutral territory, neither contracting nor expanding, which is a marked improvement from the previous 6 months of clearly contracting scores. In particular, the Price Outlook jumped from a score of 27 in August to 59 in September. Reported shipments of line pipe is expected to have been unchanged from July to August at 92,000 tons, which is half the shipment volume recorded in August of the previous year. The rig count is up slightly in September with oil prices averaging $40/bbl and natural gas just below $2/mmbtu. The details are in the report.
Pipe Logix Line Pipe Report – September 2020
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