World UO Pipe Price Plunges under Very Slow Demand

Worldwide UO pipe market price for line pipe decreases in offshore market when many natural gas pipeline projects are postponed and revised under recession. Japanese export price is now FOB US$ 1,200-1,300 per tonne for non-sour X65 grade of American Petroleum Institute with 30-48 inches of outer diameter, which is US$ 500-600 lower than a year earlier level, according to Japanese industry source. The price could decrease more due to lower demand.

Many projects are postponed and revised due to lower energy price and financial squeeze along with lower demand. A source of Japanese major integrated steel maker said no project is ongoing not only for major projects but also small- and mid-sized projects.

With the slower demand, UO pipe for line pipe supply is dull. The market price decreased by 25-30% for X65 grade products from a year earlier level.