(by Kurt Minnich, www.pipe-logix.com) Line pipe prices decreased 1.7% in March with domestic prices down 1.9% and import prices down 1.4%. This continues the prices declines that began in 2018 with prices down 18% from a year ago and down 25% since the peak in July 2018. Distributor’s sentiment, which had been increasing during the previous few months, turned sharply lower. The NASPD Line Pipe Distributor’s Index scored 39 in March and indicates a clearly contracting market environment. This compares to a score of 55 the previous month, which indicated a slightly expanding market. Sentiment regarding New Orders, Inventory Direction and the Price Outlook, all turned sharply lower. Sentiment for Order Fulfillment and Inventory Size held steady and sentiment for Import volumes increased (less import volumes expected). Reported shipment volumes of line pipe are expected to have been 18% lower in February according to preliminary filings. Oil price averaged near $30/bbl in March, 40% lower than the previous month. Natural gas price was down 8% compared to the previous month and down 40% compared to last year. March rig count was down 25% from a year ago.
Pipe Logix Line Pipe Report – Mar 2020
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com