Last month we commented about the supply situation for large diameter line pipe in the US. These include the new Jindal Pipe mill (26” ERW); Borusan’s acquisition of the Berg assets in Mobile, AL and Panama City, FL; and the recent Nucor acquisition of California Steel. It has been reported that Stupp and Evraz North America are for sale. Stupp has a large diameter spiral mill and an ERW mill through 24”. Evraz North America line pipe assets include LSAW and HSAW at Regina, Camrose, and Portland, Oregon; and ERW through 24” at Regina. Smaller ERW sizes are available at Regina, Camrose, Calgary, and Red Deer. Evraz is subject to a 26.15 dumping duty on large diameter line pipe into the US. Adding to what could be a limit to large diameter capacity represented by the status of these two facilities is the fact that plate prices remain $533/ton (according to the SteelBenchmarker) over the cost of HRB. That makes it more difficult for Durabond and for Borusan’s LSAW facility to compete on some orders and could change the economics of some projects.
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