The dust finally seems to be settling within the US domestic hollow structural sections (HSS) tubing markets, as scrap and hot rolled coil (HRC) prices seem to be flirting with their bottom. The most commonly reported ex-Midwest mill spot price for HSS tubing is down approximately $2.50 cwt. ($55/mt or $50/nt) from levels seen a month ago, and this week at least, the price trend has held sideways, at $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt). Sources close to SteelOrbis, though, think there could be an additional correction before HSS prices level off, and that the spot market could see a final $1.00 cwt. ($22/mt or $20/nt) softening “before it’s all over.”
“Demand is still pretty good,” according to one Midwest-based source, “this is all about falling raw materials costs.” In terms of imports, prices seem to be all over the map. Although the most commonly reported futures range from Korea and Turkey is still holding at approximately $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt), DDP loaded truck US Gulf coast ports, trader sources have reported outlier offers from certain Korean producers for as much as $4.00 cwt. ($88/mt or $80/nt) below the average range. “No one is making any hedge buys,” he said. “If people are buying anything it’s only because they need to fill inventory gaps.”