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According to data from Pipe Logix, May OCTG prices fell 1.4% to $1,887/ton, outpacing last month’s nominal 0.1% decline, as prices for seamless and electric-resistance welded (ERW) pipe decreased by 1.2% and 1.7%, respectively.  The drop was the biggest decline since December 2010, as some 32 out of the 39 individual products were down for the month.

While drilling activity remains robust, the 40% year-to-date rise in OCTG imports is more than offsetting rising demand.  In fact, import market share was 60% for the four months of the year, nearly as high as it was before the landmark Chinese trade case was filed in April 2009. Chinese imports have largely been replaced now with tonnage from Korea, where imports have grown some 167%.

Our full report is available to subscribers and provides further thoughts on OCTG pricing and margins as well as the implications for shares of OCTG producers.

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