Two weeks after US domestic hollow structural section (HSS) mills announced a $2.00 cwt. ($44/mt or $40/nt) price increase, spot market prices have remained stagnant. Previously reported spot ranges of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill still stand, but larger projects are still garnering significant discounts of up $1.00 cwt. ($22/mt or $20/nt) as buyers continue to be reluctant to place any orders beyond what's necessary. While distributors are filling in inventory holes as needed, they aren't willing to stock inventories since the main driver of the tubing increase--two domestic flat rolled price increases in July totaling $4.00 cwt. ($88/mt or $80/nt)--may only be temporary. However, as flats prices are trending upward and scrap prices for August have surged compared to July levels, the current tubing spot price range may soon begin to firm, if only temporarily.
Expectedly, with the US domestic market's immediate price trend uncertain, most buyers aren't even considering placing a futures order, as import orders placed today won't arrive until late November/early December. Trader sources tell SteelOrbis that futures business has been essentially non-existent for the past few weeks, especially after Turkish mills raised their offer prices. Current offers are in the range of $38.25-$39.25 cwt. ($843-$865/mt or $765-$785/nt) DDP loaded truck in US Gulf ports, up about $0.75 cwt. ($17/mt or $15/nt) over the past couple weeks.