(by Kurt Minnich, www.pipe-logix.com) Line pipe prices increased 7.5% in June with domestic prices up 7.6% and import prices up 7.3%. ERW prices increased significantly more than seamless prices again this month. This is the 9th consecutive month of price increases with a cumulative gain in the Pipe Logix Index of 63% since last September and with ERW prices having more than doubled during that time frame. Distributor’s sentiment remains strongly bullish with the NASPD Index scoring 82 for June. Distributors indicate addition al price increases can be expected in the near-term with inventory levels low and shrinking. HRC price continues to be the key driver for gains in line pipe prices. HRC averaged $1,662/ton in June, which was 3 times the HRC price a year ago. WTI oil price averaged $71/bbl in June and natural gas price was $3.2/mmbtu yet the recovery in drilling activity has been slow (further detailed in our LPRO report). There were 464 active rigs in June, which was up 85% from the low last summer but still 45% below the pre-Covid level. The drilled but uncompleted well count has decreased 25% from the peak last summer. Reported shipments of line pipe were down 9% in April to 84,200 tons and expected to have been little changed in May. These opposing trends in pricing, demand and supply will create further tension in the markets, waiting for a recon ciliation. The details are in the report.
Pipe Logix Line Pipe Report – June 2021
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