NEW YORK Distributor selling prices for oil country tubular goods (OCTG) dipped in October as market sentiment turned negative, according to the latest data from Pipe Logix LLC.
"The diffusion index of market sentiment dropped from 55 in September to 39 in October, a contracting market. Lower order volumes and higher inventories, coupled with lower price expectations, more than offset an expected decline in import volumes," Pipe Logix manager Kurt Minnich said.
OCTG products averaged $1,667 per short ton in October, down 0.4 percent from $1,673 per ton last month. Seamless product averaged $1,801 per ton, down 0.8 percent from $1,815 per ton in September, while electric-resistance welded product inched up 0.1 percent to an average of $1,533 per ton from $1,532 per ton in the same comparison.
The dip comes after OCTG prices made their biggest gains of the year in September (amm.com, Sept. 26).
The largest price dips were seen in seamless J55 tubing, which fell 2 percent to $1,720 per ton from $1,755 per ton in September; and N80 seamless tubing, which fell 1.8 percent to $2,040 per ton from $2,077 per ton.
"OCTG supply was 644,000 tons in August due to a surge of imports that was 100,000 tons over the trailing average," Minnich said, adding that supply was expected to return to more average levels in September.