NEW YORK Distributor selling prices for oil country tubular goods (OCTG) fell again in August to the lowest level since February 2010.
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.
Seamless product 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 per ton.
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.
Pipe Logixs 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.