(by Kurt Minnich, www.pipe-logix.com) Line pipe prices decreased 2.7% in June with domestic prices down 3.8%, including a 4.5% drop in domestic seamless prices. Import prices were down 1.4% driven by a 2.4% drop in ERW import prices. This is the eleventh month of declines in the Pipe Logix Index for a total decline of 15% since July 2018. Distributor’s sentiment decreased further, highlighting a strongly contracting marketplace. The NASPD Index scored 29 in June, near the all-time low score that was realized in 2015. Most components to the NASPD Index were lower in June with New Orders and the Pricing Outlook particularly low; 5 and 14, respectively. These declines were partially offset by continued improvement (lower volumes) in Imports, which scored 86 in June. Import volumes are estimated to have been less than 150,000 tons in May, down 35% from the twelve-month trailing average. The rig count has declined 10% since December, keeping the ratio of shipments to active rigs around 220 tons/rig/month. Hot rolled coil prices are down 20% from the 2014 level and down 40% from the peak in 2018.
Pipe Logix Line Pipe Report – Jun 2019
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com