Recent drops in the US' natural gas rig count and falling natural gas prices have been a cause for concern in the US domestic line pipe market over the last few weeks--the gas rig count fell by 25 last week following a 32-rig count drop the week before. But with the rapidly declining rig count, sources have informed SteelOrbis that some energy companies are shifting to more drilling for gas liquids and oil because of the downward pricing pressure on natural gas, which could keep the US oil rig count rising (oil rig counts have been trending upward as natural rigs decline). API X-42 electric resistance welded (ERW) line pipe demand, however, is still strong, with most welded line pipe used in oil drilling; spot prices remain unchanged from last week in the range of $62.50-$63.50 cwt. ($1,378-$1,400/mt or $1,250-$1,270/nt) ex-mill.
On the import side, traders report steady activity and prices, and February has so far been a strong booking month. Nonetheless, competition between the US' top import sources is likely to continue to keep import prices stable, and no major pricing moves--up or down--are anticipated. As usual, API X-42 ERW line pipe activity with Korean mills is the strongest, at prices still between $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) DDP loaded truck in US Gulf ports, with Vietnamese offer prices within a similar range. Indian offer prices are between $48.25-$49.25 cwt. ($1,064-$1,086/mt or $965-$985/nt), but attracting less activity due to less expensive Korean and Vietnamese prices.