(by Kurt Minnich, www.pipe-logix.com) Line pipe prices increased 6.7% in February with domestic prices up 6.3% and import prices up 7.2%. ERW prices gained the most with prices for domestic 2″- 4″ diameters up 14% and 6″-10″ up 15%. This marks the 5 consecutive month of price gains in the Pipe Logix Index with a cumulative gain of 25%. Current pricing is up 10% compared to a year ago. Distributor’s sentiment remains bullish with a NASPD Index of 73 in February. 90% of the distributors expect prices to be higher over the next two months. However, the expectations for new orders has drifted lower with a score of 59 in February compared to 73 the previous month. Imported supply of line pipe was 86,000 tons in December 2020 but expected to have been just 37,000 tons in January 2021. The number of active drilling rigs continues to climb, up 6% in February and up 59% from the low in August 2020. Oil and gas prices have increased significantly from last year though the recent surge in Henry Hub gas prices was regional (Nymex price is mostly unchanged) and likely a short-term spike. HRC and scrap steel prices continue to drive line pipe prices higher with HRC price now double what it was a year ago. The details are in the report.
Pipe Logix Line Pipe Report – February 2021
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com