Distributor selling prices for oil country tubular goods (OCTG)
fell again in August to the lowest level since February
While distributors are
expecting a decrease in imports and inventories going forward,
oversupply remains a concern, said Kurt Minnich, manager of
Tulsa, Okla.-based Pipe Logix Inc.
OCTG product prices
averaged $1,655 per ton this month, down 0.2 percent from
$1,658 in July and 10.6 percent below $1,851 in August last
year, according to Pipe Logix data. OCTG prices hit a low of
$1,625 per ton in February 2010.
prices fell 0.1 percent to $1,796 per ton and welded products
logged a 17th consecutive fall, shedding 0.2 percent to $1,514
The biggest fall was
recorded by seamless N80 production casing, which slid 1.9
percent from July to $1,663 per ton.
However, seamless K55
production casing rose 2.6 percent month on month to $1,396 per
ton and seamless K55 surface casing gained 2.5 percent to
$1,428 per ton.
recently introduced OCTG distributors index stood at 54
for the month, "indicating a slightly expanding market,"
Minnich said in a statement.
Pipe supply has grown
to more than 300 tons per drill rig, well above the average of
271 tons per rig for the past year, he added.