Import seamless line pipe prices soared because countries of origin may be assigned quotas in the Section 232 negotiations, according to market participants who report already having trouble finding enough material.
American Metal Market's pricing assessment for import seamless line pipe
climbed to a new range of $1,500-1,635 per short ton cfr Port of Houston on Tuesday May 29, from $1,300-1,450 on Tuesday April 24.
A major source of import seamless line pipe, Brazil, already has agreed to a quota
in exchange for exemption from the Section 232 tariff. Negotiations continue with other nations, including separate talks to revise the North American Free Trade Agreement with Canada and Mexico
"If Mexico gets a quota, the approved import seamless line pipe is really going to be tight," one southern distributor said.
"The offers right now are small quantities," a second southern distributor said. "We are...