STEEL TUBE & PIPE: OCTG fights ‘triple whammy’

Some positive signs have finally materialized in the oil country tubular goods (OCTG) market in the United States, but a return to pre-pandemic patterns remains elusive, panelists said during the opening session of Fastmarkets’ Steel Tube and Pipe 2021 conference on Monday May 10.

“It really has been kind of triple whammy for us... First, we had the unforeseen oil price crash last year, and then Covid was terrible, and now these coil prices for ERW (electric-resistance welded) guys means it’s not over for us yet,” Kirk Murray, vice president and general manager of SeAH Steel America, said on the supply panel discussion. “We’re optimistic that demand is coming back, but now coil prices have detached from scrap and our coil suppliers are telling us there’s no end in sight, at least for the next three or four months. Demand for their product is so strong that it’s going to remain high for the rest of the year,” he said. Despite HRC prices continuing to reach record-breaking highs, climbing above $76 per hundredweight on Monday, panelists have tried to look at the bright side and unanimously relished the fact that at least it’s no longer 2020. “We’re starting to...

Published

Mark Burgess

May 11, 2021

22:18 GMT

Knoxville, Tennessee