US domestic hollow structural sections (HSS) tubing spot market prices have taken an unexpected turn in the past two weeks. Tube mills have announced price increases every month since March, and despite the most recent increase announcement, which was set to take hold July 1, some sources close to SteelOrbis say they’ve seen some softening.
As of late June, US HSS spot market prices were trending at approximately $47.00 cwt. ($1,036/mt or $940/nt). Today, although some SteelOrbis sources report still getting quotes from mills at that level, others say they’re getting offers as much as $1.50 cwt. ($33/mt or $30/nt) below that.
“The tube mills announced three subsequent price increases and the margins were disproportionate to the increases that were seen in the hot rolled market.” one source said. “The tubers reached for the sky and it got to the point that they realized that no one was re-stocking at these higher price levels because everyone was afraid the price bubble was going to pop. They’re finally starting to let some of the air out of the tires.”
Other sources say that buyers are still placing orders on an as-needed basis out of concern that additional corrections could be on the horizon.