OCTG tags holding, but supply concerns linger
Dec 30, 2011 | 03:54 PM
| Michael Cowden
TORONTO Oil country tubular goods (OCTG) tags should hold their ground going into the new year due to high oil prices and strong drilling activity on shale plays, market sources told AMM. Renewed demand for OCTG, however, may not be enough to curb a possible oversupply at domestic and foreign mills when buyers look to restock in 2012.
Additionally, while higher-strength alloy products could see strong gains, prices for commodity carbon products could waver, sources said.
Some alloy grades, such as L and P, are in demand because they are better able to withstand higher temperatures and deeper wells with long laterals and multiples fracks in shale plays, one distributor source said. "Carbon grades, its a different situation. You see a lot more volatility on those items," he added.
Such comments largely echo the most recent data from Pipe Logix Inc., Tulsa, Okla., which put average OCTG prices at $1,859 per ton in December, up $1 from the previous month and 11.3 percent higher than $1,671 per ton in December 2010. ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.