Steel Products

Rig Count Falls in US and Canada
Written by Becca Moczygemba
September 5, 2023
US and Canadian rig counts both dropped last week, according to the latest data from oilfield services company Baker Hughes.
Active rigs in the US fell to 631 as of Sept. 1, down by one from the previous week.
US oil rigs remained unchanged week over week at 512, while gas rigs fell by one to 114. Miscellaneous rigs were unchanged at 5.
Compared to the same period one year ago, the US rig count is down by 129 rigs, oil rigs are off by 84, and gas rigs are down by 48. However, miscellaneous rigs are up by three to five, according to Baker Hughes..

Canadian rigs are down by three to 187 week over week. Oil rigs in Canada are down by one to 115, while gas rigs are down two to 72 in the same comparison.
Working rigs in Canada are down by 21 year over year, with oil rigs off by 28, while gas rigs are up by 7.

The international rig count is down by nine from July to 952 rigs in August, but is up by 92 rigs from August 2022, Baker Hughes said.

The number of oil and gas rigs in operation is important to the steel industry as it is a leading indicator of demand for oil country tubular goods (OCTG), a key end-market for steel sheet.
A rotary rig is one that rotates the drill pipe from the surface to either drill a new well or to sidetrack an existing one. Wells are drilled to explore for, develop, and produce oil or natural gas. The Baker Hughes Rotary Rig count includes only those rigs that are significant consumers of oilfield services and supplies.
For a history of both the US and Canadian rig count, visit the Rig Count page on the Steel Market Update website here.

Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products

OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.

Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.

CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]

Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.