NEW YORK The price differential between oil country tubular goods (OCTG) tubing and casing is climbing as competitively priced imports have dwindled due to preliminary dumping duties levied in an ongoing trade case, market sources told AMM.
"Im seeing some things that are different out there. The differential between tubing and casing is climbing to more historic levels," one trader said.
The price differential for tubing had narrowed to as low as $20 per ton above casing prices prior to the preliminary decisions, but now stands at roughly $50 to $60 per ton, he said, adding that the spread has been as high as $100 per ton in the past.
Shrinking imports from countries such as the Philippines, which has been a supplier of competitively priced tubing, is part of the reason for the climbing differential, the trader said.
There were no OCTG imports from the Philippines in March and April, although 12,860 tonnes of the product are slated to arrive from the country thus far in May, according to the latest license data from Commerces Enforcement and Compliance division, updated June 10.
Filipino OCTG producers were assessed a preliminary dumping margin of 8.9 percent in the case (amm.com, Feb. 18).
A second trader confirmed the trend, which he also attributed to market anticipation about possible changes in the final anti-dumping determinations, due to be published July 10.
A recent post-preliminary decision that assessed countervailing duty margins on two Turkish OCTG producers (amm.com, April 25) had some market participants spooked about potential changes in the dumping rate for South Korea, also a significant tubing supplier, he said.
A distributor in the Midwest agreed that tubing prices were "up a little" as material was "fairly tight," although he couldnt confirm any significant changes in spreads.
Overall OCTG imports thus far havent dwindled as a result of the preliminary decisions, with U.S. inflows of the material on course to reach record levels for May, led by a 193,258-tonne shipment from Korea (amm.com, June 4).