Following two announced price increases, US domestic spot prices for hollow structural sections (HSS) have moved up. In the last two weeks, spot prices have increased as much as $1.50 cwt. ($33/mt or $30/nt) to $46.50-$47.50 cwt. ($1,025-$1,047/mt or $930-$950/nt) ex-Midwest mill. Sources have told SteelOrbis that prices vary drastically depending on which mill you order with--while some mills are only pushing for $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) of the combined $4.00 cwt. ($88/mt or $80/nt) increases right now, others have been quoting prices as high as $48.00 cwt. ($1,058/mt or $960/nt) ex-Midwest mill. However, buyers believe that all mills will likely begin to insist on at least the initial $2.00 cwt. ($44/mt or $40/nt) increase starting next week, after price protection no longer applies.
Overall, however, purchasing activity has picked up since late July/early August and distributors have been more willing to fill inventory holes, but there is still little hedge buying taking place. While HSS spots are poised to rise for the next couple weeks due to an upward trend in the domestic flats market, uncertainty for more than a few weeks or a month in the future remains prevalent and few are willing to take an inventory risk. Not surprisingly, then, import activity is extremely quiet, with interest minimal in Turkish offer prices in the range of $38.25-$39.25 cwt. ($843-$865/mt or $765-$785/nt) DDP loaded truck in US Gulf ports. Trader sources have indicated that Turkish mills aren't pushing for orders at the moment either, aware that US interest is lukewarm, at best.