The market for both domestic and import carbon steel pipe products has remained strong for 1Q17. On the domestic front, there remains a shortage of small diameter seamless (2.0” – 4.0”), which has created inflated prices. Also, the Trump administration is intent on promoting domestic manufacturing and, in particular, has focused on steel, which is putting more pressure on imports. Going forward, rulings on the outstanding trade cases have the potential to disrupt the general orderly flow of carbon steel pipe.
As for imports, prices are weakening for raw material prices along with Chinese hot-rolled coil, which should point to a softening market, at least in the welded pipe products. Also, due to dumping on OCTG pipe, some Korean mills are switching production to standard and line pipe in order to keep the mills running. More than likely, this will create a surplus that will soften pricing for the short term.