(by Rye Druzin, www.pipe-logix.com) US line pipe prices fell by 1.7% in January, accelerating declines compared with domestic prices down by 1.9% and import prices down by 1.4%. The domestic all sizes ERW average price fell by 4.8% to $1,920/short ton (st), pushed down by decreases in 2-8 inch and 18-24 inch diameter ERW pipe, while the all sizes seamless average price slipped by 0.4% to $3,808/st.
The import all sizes ERW average price fell by 2.6% to $1,514/st, while the all sizes seamless average price declined by 0.8% to $2,865/st, with lower small diameter prices dragging values down. Distributor’s sentiment fell in January by eight points to 49, the first decline since July and the lowest reading since October. The price outlook plunged by 28 points to 55, still in positive territory but the lowest reading since October. Oil prices dropped by 6.8% in December compared to the prior month, while natural gas prices fell by 17%. Hot-rolled coil (HRC) prices jumped by 17%, as steel mills were successful in maintaining high prices in December. The average North American drilling rig count for December rose by five to 623 compared to the prior month.