Pipe mart optimistic despite rumored price drop

Feb 21, 2012 | 05:15 PM | Michael Cowden

Tags  HSS, OCTG, line pipe, scrap, coil rig count, oil, natural gas, shale steel tube

TORONTO — Steel pipe and tube tags appear to be relatively stable heading into March despite a reported drop in prices on hollow structural sections (HSS) by at least one major producer.

But while pricing seems to have remained largely flat, sentiment has taken a bullish turn, according to a recent informal survey of the steel tube and pipe market by AMM.

Respondents were about evenly split as to whether prices would hold steady or move upward in coming weeks and months, while some two-thirds characterized the current steel tube and pipe markets as "good"—an increase over the 40 percent who said so last month (AMM, Jan. 25).

"Order books are good through (the) second quarter. Prices are stable to moving up," said one mill source.

Oil prices, the rig count and pipeline construction all signal positive fundamental demand on the energy tubulars front, he added. "The only down(side) is natural gas. But as rigs move to the oil, the market will adjust," he said.....