(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – Last month we commented about the supply situation for large diameter line pipe in the US. These include the new Jindal Pipe mill (26” ERW); Borusan’s acquisition of the Berg assets in Mobile, AL and Panama City, FL; and the recent Nucor acquisition of California Steel. It has been reported that Stupp and Evraz North America are for sale. Stupp has a large diameter spiral mill and an ERW mill through 24”. Evraz North America line pipe assets include LSAW and HSAW at Regina, Camrose, and Portland, Oregon; and ERW through 24” at Regina. Smaller ERW sizes are available at Regina, Camrose, Calgary, and Red Deer. Evraz is subject to a 26.15% dumping duty on large diameter line pipe into the US. Adding to what could be a limit to large diameter capacity represented by the status of these two facilities is the fact that plate prices remain $533/ton (according to the SteelBenchmarker) over the cost of HRB. That makes it more difficult for Durabond and for Borusan’s LSAW facility to compete on some orders and could change the economics of some projects. Oneok, a gas-focused midstream company, has reached a deal to purchase Magellan Midstream which is more liquids focused. The combined company will control about 25,000 miles of pipelines. According to a Bloomberg article, an agreement on speeding permits for energy projects is emerging as a key potential component in any deal to avert a US default. Aides working behind the scenes to identify potential areas of compromise already have zeroed in on changes to permitting rules that would expedite production of fossil fuels, a priority for Republicans and some Democrats. Import Supply – The March import total was 89,597 tons which was 4,000 tons over the license tally from last month. April 2023 import licenses are down at 77,741 tons. The May linear forecast, with 12 of 23 days summed, is up again at 85,307 tons. The top import item for the month of March 2023 was carbon ERW, over 4 ½” OD not over 16” OD, at 27,994 tons – down quite a bit after being up last month. The price was $1,325/ton which is lower by $386/ton reversing last months increase 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 – May 2023
Pipe Exchange
14025 West Road
Suite 100
Houston, TX 77041
- Phone: 713.934.9480
- Fax: 713.934.9490
- Email: sales@pipexch.com