US domestic HSS prices begin to firm

Friday, 09 December 2011 02:29:28 (GMT+2)

Atlas Tube led a second round of price increases on hollow structural sections (HSS) in the US on Tuesday, raising prices $2.50 cwt. ($55/mt or $50/nt) effective immediately with new orders. With the support of a jump of about $40-$50/lt in busheling scrap prices in December and domestic hot rolled coil (HRC) spot prices trending strongly up this week, tubing mills will likely begin to fully collect the first $1.50 cwt. ($33/mt or $30/nt) increase within the next couple weeks, and possibly even a portion of this week's increase in January. But for now, domestic HSS spot prices are $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill, as they were two weeks ago, although the prevalent deal-making over the past month below the average spot market prices has now quieted.

Turkish tubing prices in the US are about $1.50 cwt. lower than they were two weeks ago, in the range of $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) DDP loaded truck in US Gulf ports, but are beginning to trend upward in line with increasing raw materials in the Turkish domestic market. Trader sources have informed SteelOrbis that although a few orders have been booked with Turkish mills--some rather significant--there isn't much confidence that the rising US domestic prices have staying power, making the long offshore lead times too big of a risk for most.

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