(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Small Diameter – As our readers know, much of the small diameter line pipe sold in the US is tied to connecting new wells to processing facilities or to tanks or to transmission lines. Small diameter line pipe shipments have been improving, as shown in the chart above, along with well completions since 3Q2020. With rig counts basically stalled and DUC inventories at low levels, small diameter line pipe shipments are likely to level out in the coming months. Large Diameter – In early March, Whitewater Midstream was granted a permit by the Texas RRC to construct the Blackfin natural gas pipeline that will connect Colorado County (Eagle Ford) to Hardin County Texas. The permit mileage is 185 and a pipe diameter was not specified. There are about 470 miles of pipelines awaiting FERC approval from application dates as old as 2019. In January, a new acting FERC Chairman, Willie Phillips, took over the reins of the agency and appears to be acting more quickly than his predecessor when it comes to approving new pipeline projects. In one of his first acts, Phillips converted full environmental impact studies for three small pipeline projects into much faster environmental assessments. With the acquisition of the US Berg facilities by Borusan, the ramp up of the Jindal Pipe 26” ERW mill, the uncertain status of Stupp’s pipe mills, and the acquisition of a share of California Steel by Nucor, the supply situation in the US for large diameter pipe has changed. More on that next month. Import Supply – The February import total was 115,776 tons which was 3,000 tons over the license tally from last month. March 2023 import licenses are down at 93,173 tons. The April linear forecast, with 11 of 20 days summed, is down some at 83,352 tons. The top import item for the month of February 2023 was carbon ERW, over 4 ½” OD not over 16” OD, at 43,328 tons, volume up a bit after being down substantially last month. The price was $1,711/ton which is up $166/ton reversing last months drop and then some. As we have said before price has had no impact on quantity. Domestic mills are coming back into the market.
Preston Pipe Report – March 2023
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com