Distributor sentiment on oil country tubular goods (OCTG) rose
further in December despite another slight drop in overall
sentiment is improving with the index increasing to 54,
suggesting a slightly expanding market and returning to the
sentiment levels measured in late summer," Pipe Logix LLC
manager Kurt Minnich said.
The index also showed
an uptick in November as orders improved, although prices also
fell compared with the month prior (
amm.com, Nov. 27).
OCTG product prices
averaged $1,643 per short ton in December, down 0.2 percent
from $1,647 a month earlier. Seamless product averaged $1,766
per ton, down 0.6 percent from $1,776 per ton, while
electric-resistance welded product inched up 0.1 percent to
$1,519 per ton from $1,518 per ton in the same comparison.
The largest decline
was seen in seamless N80 production casing, which fell 2.1
percent to $1,661 per ton from $1,697 per ton in November;
followed by seamless N80 tubing, which fell 2 percent to $1,910
per ton from $1,950 per ton.
continue to pressure the market.
"Import volumes were
nearly 400,000 tons in October, significantly above the
trailing average. Imports in November are expected to be around
300,000 tons. At a consumption rate of 275 tons per rig per
month, and a rig count that has averaged 1,760 year to date,
the market has been oversupplied for the past several months,"
The average price differential between domestic and import
items grew to $443 per ton in December, he added.