Carbon steel fittings & flanges report: August 2018
Inventory levels and availability for A105 BW fittings and flanges remain good. Activity has remained steady even amid issues that include tariffs, dumping suits and uncertainty for future projects. Many people are reporting that projects have remained on a track to move forward even with the additional costs of products over the last 2 quarters.
The most recent risk of doubling of tariffs on steel from Turkey has caused new concerns. The market for A105 BW fittings and flanges has been impacted by the lawsuits for dumping and countervailing that were filed last year by several U.S. producers. There are no reports of imminent price increases above current levels. If more projects move forward there could be some additional demand on supplies.
Most of the upstream activity has been driven by increased activity in the Permian Basin. According to the Baker Hughes Rig Count for 08/10/18, North American rig counts are up 97 compared to August 2017. 95% of these are oil rigs with the Permian Basin accounting for nearly all of the increase. The two areas specifically are Texas, up 14% to 522 rigs and New Mexico up 75% to 107.
WTI Crude Oil prices as of 08/15/18 posted on oilprice.com are at $65.33 per barrel compared to $46.78 one year ago.
Natural Gas prices on the Henry Hub Listing are at $2.96 per Dekatherm for 08/15/18 compared to $2.89 a year ago.
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