Although US domestic hollow structural sections (HSS) tubing prices are mostly steady since our last report two weeks ago, many sources close to SteelOrbis believe that HSS mills will soon try for another price increase.
The mid-April price increase of $3.00 cwt. ($66/mt or $60/nt) is set to be “fully accepted by the market as of May 9,” one source said. Two weeks ago, SteelOrbis reported that two HSS mills implemented that price increase, which was set to raise spot market prices to $39.00 cwt. ($860/mt or $780/nt), “effective immediately,” while a third announced they would not be implementing the increase until May 2. Two others had said they would not be implementing the price increase until May 9.
As of May 9, the $39.00 cwt. ($860/mt or $780/nt), ex-Midwest mill spot market price will be “firm across the board,” another source said.
Recent upticks in HRC pricing have many speculating that HSS mills soon announce another price increase. Yesterday, ArcelorMIttal announced they were setting a new, $30.50 cwt. ($672/mt or $610/nt) base price for US HRC coil, effective immediately. If accepted, this new price will reflect an approximate $4.00 cwt. ($88/mt or $80/nt) uptick from the current average spot market transaction price.
“The rumor on the street is that HSS mills will put out another price increase in the next few days and it will be in $80-$100/nt range,” one source said. “Demand is not robust but prices are going up all the same.”