The
US domestic hollow structural sections (HSS) market could soon be the victim of falling raw materials prices.
US domestic scrap prices have come down in the past month, and prices for
US domestic hot rolled coil (HRC) have come down by about $2.50 cwt. ($55/mt or $50/nt) since the start of February. Although the most common current transaction range for HSS has held at neutral in the past two weeks, still at $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) ex-Midwest mill, that could soon change. Industry insiders believe that if scrap and HRC prices continue to soften, HSS prices will be soon to follow, and could erode by as much as $1.00 cwt. ($22/mt or $20/nt) in the next few weeks.
Meanwhile, import HSS offer prices from
Korea and
Turkey have trended sideways since our last report two weeks ago, at $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt), DDP loaded truck
US Gulf coast ports, but current interest is scant at best. Bookings that took place at the end of 2013 are starting to arrive, according to trader sources, and it’s speculated that the influx of material into the domestic market could lead to downward pressure in terms of prices.