(by Kurt Minnich, www.pipe-logix.com) Line pipe prices were down $49/ton or 2.9% in July with prices for domestic items down 2.5% and prices for import items down 3.4%. Prices for ERW items were particularly lower; domestic ERW down 4.6% and import ERW down 4.9%. This marks one full year of price decreases and an 18% cumulative decline in the Pipe Logix Index. Sentiment remains below 50, indicating a contracting market environment. The NASPD Index of sentiment was 39 in July, up 10 points from the previous month but it continues to point to further contractions in the market. While New Orders and the Price Outlook improved, both remain below 50. Reported line pipe supply was little changed over the trailing 12 months compared to the previous period averaging 259,000 tons/month. Meanwhile, the July rig count was down 11% from the peak in December 2018 and oil and natural gas commodity prices were lower. Oil was in the mid $50s/bbl in July compared to the mid $60s/bbl a year ago and gas was averaging $2.4/mmbtu (recent daily prices closer to $2/mmbtu) versus $3/mmbtu a year ago. The ratio of line pipe supply to active rig count was mostly steady last month at 225 tons/rig.
Pipe Logix Line Pipe Report – Jul 2019
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com