(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Small diameter line pipe shipments have been increasing, along with drilling, since late 2020. Unfortunately, high coil prices in the US have resulted in a stalled recovery for domestic producers. It is looking like that may be about to change. With base domestic HRB prices solidly below $1,000/ton, we would expect that domestic welded producers would be able to compete with the bulk of the imported line pipe, in the 4 ½” – 16” carbon grades, which is entering at close to $1,500/ton. That said, import share of small diameter, which is currently close to 75%, is not far off from recent averages. There are several pipelines that are in the process if meeting demand by expanding capacity on existing infrastructure. One of the more high profile examples is the Whistler Pipeline which is boosting capacity by about 0.5 bcf/d by adding three compressor stations. Other expansions in the works include the North Baja Express, and the Gas Transmission Northwest. New pipeline approvals continue to be a challenge. Despite the highest gas prices in 14 years, production in Appalachia and the Permian is slowing due to pipeline constraints. Import Supply – The May import total was 92,122 tons which was 8,000 tons more than the license tally from last month. June import licenses show a slight increase in volume with 116,100 tons. The July linear forecast, with 6 of 20 days summed, is up at 106,267 tons. Keep in mind this is a linear forecast, and it is very early in the month. The top import item for the month of May 2022 was Carbon ERW, over 4 ½” OD not over 16” OD, at 35,558 tons. The price was $1,466/ton which is down $6/ton. Also the top item of the year so far now selling just below the average price of the year. There are no S232 or country duties in these numbers.
Preston Pipe Report – July 2022
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com