US line pipe prices dropped by 1pc to $2,267/short ton (st) in August, with the domestic and import markets down by similar levels.
This is the 27th consecutive month of overall price decreases. Domestic prices declined by 0.9pc and import prices fell by 1pc.
The domestic all sizes ERW average price rose by 1pc to $1,766/st, while the all sizes seamless average price fell by 1.9pc to $3,317/st.
The import all sizes ERW average price declined by 0.7pc to $1,409/st, while the imported seamless average pipe prices dropped by 1.1pc to $2,578/st.
Distributor's sentiment jumped by 11 points compared to July to a neutral reading of 50, the highest reading since March.
The price outlook jumped by 25 points to a slightly negative reading of 46, the highest since April. A reading below 50 indicates expectations that prices will fall, while a reading above 50 indicates expectations that prices will rise.
The majority of distributors expect prices to be flat over the next few months, while a quarter expecting lower prices and 15pc expecting them to go higher. In July most distributors expected prices to be down.
A driver of the improved price expectations is a recent increase in hot-rolled coil (HRC) prices, with the Argus US Midwest and southern HRC assessments up by 6.9pc since 30 July.
The new orders distributor's rose by eight points to a slightly negative reading of 46, with distributors reflecting the same sentiment as with the pricing outlook.
Inventory direction increased by four points to 59, with more distributors this month indicating inventory is shrinking faster than in the prior month. A reading below 50 would indicate that inventories are growing.
Unsold inventory rose by five points to 55, with almost all respondents indicating that unsold inventory levels are average.
Oil prices were up by 2.3pc in July compared to the prior month, while natural gas prices dropped by 21pc. HRC prices fell by 8.4pc sequentially in July.
The average North American drilling rig count for July fell by 2 to 586 compared to the prior month.
