As previously forecast, cracks within the
US domestic flat rolled market has caused prices for hollow structural sections (HSS)
tubing to dip by approximately $1.50 cwt. ($33/mt or $30/nt) since our last report three weeks ago. This correction puts the new approximate spot transaction range between $45.50-$46.50 ($1,003-$1,025/mt or $910-$930/nt), ex-Midwest mill, with deals on the lower end of that range more common for buyers looking to place larger orders. Lead times remain relatively short, according to industry insiders, with most
tubing mills having three week lead times or less. And since construction is expected to slow down as the year comes to an end due to inclement weather patterns in most of the country, demand is not anticipated to pick up any time soon. This, compounded by continued softness within the
US domestic flats market (which is not expected to be impacted by recently-announced flats price increases), puts the trend for HSS at neutral to soft.
Meanwhile, import offer prices from
Korea have not wavered and are still in the approximate range of $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) DDP loaded truck in
US Gulf ports. Some, but not many orders are being placed, a trend largely due to the fact that most
US projects require primarily domestically-produced material, which means that imports are not the most viable option.