Domestic pipe producers are raising prices by $40 per ton on ERW. OCTG is catching up with demand, which should relieve mill pressure to look again at standard and line pipe.
There have been major increases in pricing over the past couple weeks. This is due to the increase in coil (Chinese) and the pressure from the U.S. Department of Commerce to finalize the Section 232 case before the end of this year. Some import mills are not quoting due to the uncertainty in the market. Pricing is getting way ahead of demand.
Weld fittings & flanges
Market conditions have recently changed. Price increases on non-approved import fittings have risen sharply. Reports are that prices have risen 10 to 15%. There also are reports of some manufacturer increases of 20 to 25%. Availability remains acceptable for current demand levels.
The Baker Hughes Rotary Rig Count on Sept. 8, reflects the year-over-year improvement in operating rigs. The current rig count in North America is 1,146 oil and gas rigs compared to 642 at the same time in 2016. Oil rigs stand at 756 vs. 414 a year ago and gas rigs are 187 compared to 92 last year. The top three areas for change are in Permian, which is up 200 to 382 vs. 182 a year ago, Eagle Ford is at 73 vs. 35 a year ago and Cana Woodford is at 67 vs. 36 at same time last year.
At the time of this writing, WTU Crude is $48.30 per barrel. Oil has traded in a narrow band for the last 12 months. Excess supply vs. demand has kept prices stable. Effects of multiple hurricanes, including Harvey in the Gulf Coast, have not been realized beyond the gas pump. Early indications are the futures for gasoline already reflect a quick recovery to pre-hurricane pricing.
Natural Gas on the New York Mercantile Exchange is $3.00 MMBtu at the time of this writing, up about $0.24 in the last several months. The increased demand continues to be driven by new chemical projects coming online.
Forged steel fittings
Pricing has remained stable with no change to list pricing since May, 2011. Supply is sufficient for both domestic and import product. Raw material has increased on SBQ but not to the point where manufacturers have issued a pricing adjustment. The industrial market has rebounded as has oil and gas, however not enough to warrant a price change.
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