OCTG Pipe Prices Fall Amid Declining Oil Prices and Market Volatility

Overview of the 9% Drop in OCTG Pipe Prices in May

OCTG (Oil Country Tubular Goods) pipe prices experienced a significant 9% decline in May, following a dip in oil prices. From the beginning of the year to mid-May, the prices for OCTG pipes in North America had surged. This increase was due to anticipations of strong support for oil production under former President Trump’s energy policies. Prices for the 5.5-inch OCTG pipes rose from $1,940/ton to $2,356/ton. However, oil price fluctuations caused by geopolitical tensions and overproduction from oil-producing countries led to a price drop in May, falling back to $2,356/ton.

This price decline is closely tied to the fluctuation in the price of oil, which saw a sharp drop from $80 to just under $60 per barrel. This occurred between January and April 2025. The impact of geopolitical developments and market uncertainties significantly affected global oil prices and, in turn, the cost of OCTG pipes.

Factors Behind the Falling OCTG Pipe Prices

OCTG pipe prices have historically been influenced by several key factors. These include the price of oil and the number of active oil rigs in the U.S., which are some of the primary drivers. In early 2025, the number of drilling rigs in the U.S. showed a marked decrease, falling to its lowest levels since November 2021. This reduction in drilling activity has a direct effect on the demand for OCTG pipes, as fewer rigs translate to less need for the tubular products used in drilling operations.

Meanwhile, in Turkey, welded pipe prices have seen a steady fluctuation throughout 2025. This is largely due to the dynamics of hot-rolled coil prices. These fluctuations are tied to weak demand in the first part of the year, followed by a slight improvement in February. However, by April and June, prices fell again due to a combination of factors. These include weak demand and cheaper imports from Asia. Turkish pipe manufacturers have struggled with this volatility, adjusting prices to remain competitive in an uncertain market.

SuperMetalPrice Commentary:

The recent 9% drop in OCTG pipe prices highlights the volatility in the global oil and steel markets. Rising oil prices had previously bolstered the demand for OCTG pipes. However, recent geopolitical shifts and economic uncertainties have reversed that trend. The decrease in drilling activity in the U.S. and the effects of Asian imports on Turkey’s welded pipe prices are crucial factors to watch.

For businesses involved in the OCTG and pipe markets, it is important to stay vigilant regarding oil price trends. These trends will continue to influence demand for related products. The fluctuations in market dynamics will require manufacturers and suppliers to adapt quickly and strategically. This is particularly important as demand remains unpredictable.