Current situation:
- NYMEX domestic hot-rolled coil steel prices were $585 per ton for January futures ($557 per ton in the last update).
- Producer prices for steel pipe and tube were down 1.8% month-over-month in November (down 1.0% last month). Year-over-year, prices are 7.1% lower (5.9% lower Y/Y last month).
Key factors that could affect supply or price:
- As the new year starts, business conditions remain soft with no significant changes in product costs. Carbon steel pipe continues its rapid devaluation as inventories remain strong and competition among mills heats up. Larger diameter and especially seamless material have held its value more than smaller diameter welded product. Anticipation is that prices will stay depressed through the end of calendar year.
Long-term worldwide developments and consumer spending trends predict a strong five years for carbon steel tube and pipe ahead of us.
