US line pipe prices jump on Section 232 supply fears

Line pipe prices climbed in the United States after the Section 232 import curbs triggered supply fears at a time when the outlook for oil and gas pipeline demand appears to be strong. Prices for oil country tubular goods (OCTG) were little-changed near multiyear highs, with hikes on the way.

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...

Published

Dom Yanchunas

May 29, 2018

21:33 GMT

New York