US oilcountry tubular goods (OCTG) pricing continued its slow slide over the Christmas holiday week as demand remains uncertain in early 2019, Kallanish reports.

Representative P110 domestic welded casing fell to $1,450-1,500/short ton, and some mills are offering one-off or volume deals as low as $1,425/st, market sources say.

“Demand is a big question with crude sub $50 per barrel,” says one Gulf Coast trader. “So, there’s a little panic in OCTG, forcing pricing below $1,500/st.” The trader adds that year-end tax concerns and lingering Section 232 uncertainty are also eating in OCTG prices.

“Year-end tax management is partially responsible for the price softness,” he says. “And the 232 impact on the first quarter is still uncertain, too.”

A second trader agrees that prices have slipped below the $1,500/st mark “... if you want to buy anything for stock and in a decent quantity.”

Too-full inventories combined with uncertain demand will likely keep prices suppressed throughout Q1.

“Some folks with experience seem to think or believe that in Q2 we might finally see some prices stabilising and/or modestly increasing, depending on the item in question,” he says. “Whether or not that actually happens is anyone’s guess.”