NEW YORK Oil country tubular goods (OCTG) distributor sentiment fell in February compared with the previous month as prices slid to a 37-month low.
"Key changes within the index include an outlook for lower pricing and oversupplied volumes in the near term," Kurt Minnich, manager of Tulsa, Okla.-based Pipe Logix LLC, said in a statement.
OCTG product prices averaged $1,619 per short ton in February, down 0.5 percent from $1,627 the previous month to the lowest level since January 2010, when average prices sagged to $1,598 per ton. Seamless product averaged $1,738 per ton in February, down 0.2 percent from $1,742 the previous month, while electric-resistance welded (ERW) product fell 0.7 percent to $1,501 per ton from $1,512 in the same comparison.
The largest declines in February were recorded by high-collapse P (HCP) ERW production casing, which fell 2.6 percent to $1,686 per ton from $1,731 the previous month, and ERW N80 production casing, which also dropped 2.6 percent to $1,559 per ton from $1,600.
The price differential between domestic and imported product shrank by $47 in February to $378 per ton from $425 in January.
OCTG supply shrank by 1 percent to 6.2 million tons in 2013 from 6.3 million tons the previous year, Minnich said.
Meanwhile, OCTG demand is expected to rise steadily over the next few years, reaching 6.9 million tons in 2015, according to Pipe Logix research.