US domestic spot prices for hollow structural sections (HSS) have shown signs of firming in the last couple of weeks, but not by the full increase amount. Just one month ago, US domestic tubing mills cut prices by $1.50 cwt. ($33/mt or $30/nt) to about $43.50-$44.00 cwt. ($959-$970/mt or $870-$880/nt) ex-Midwest mill. As a result, it comes as no surprise that price increases announced about two weeks ago have drawn skepticism. There has also been some public disagreement over whether HSS prices should be increased by the initial $2.50 cwt. ($55/mt or $50/nt) announced by Atlas Tube, or by a smaller $1.50 cwt. ($33/mt or $30/nt) increase from a few other mills. But while some mills reduced their price increase down to $1.50 cwt., Atlas Tube sent a letter to customers indicating that its initial increase remains in effect and was due to "strong demand for HSS products," and calling the lower price increase from some mills "destructive."
Regardless, the general consensus is that HSS spots are indeed up, but not across the board. Sources tell SteelOrbis that while some mills immediately pushed for higher prices, especially as flat rolled mills have now announced a second price increase, others have allowed customers to place orders at pre-increase levels. For now, HSS spot prices are up about $0.50 cwt. ($11/mt or $10/nt) to $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) ex-Midwest mill, with prices slightly higher for smaller buyers or buyers with less negotiating power. There is no rush to place orders, however, as many still remain wary that the increases have much lasting power. That mentality continues to take a toll on import activity, despite falling prices. About two weeks ago, HSS import offer prices out of Korea and Turkey fell another $1.00 cwt. ($22/mt or $20/nt) to the current range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) DDP loaded truck in US Gulf ports. A number of customers have placed a few orders with the offshore mills given the attractive pricing, but most continue to stick largely to domestic material.