Expectedly, US domestic hollow structural sections (HSS) mills lowered prices again in the last two weeks, but spot buys below official prices remain common. Tubing mills dropped prices by $0.50 cwt. ($11/mt or $10/nt) over the past two weeks, reflecting the third decline in the last six weeks. Since early May, mills have decreased HSS prices by approximately $3.00 cwt. ($66/mt or $60/nt) from $50.00 cwt. ($1,102/mt or $1,000/nt) ex-Midwest mill to the current level of $47.00 cwt. ($1,036/mt or $940/nt) ex-Midwest mill. Larger tonnage and buyers with any negotiating power are already paying lower prices and the general spot range is now $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-mill. HSS prices are anticipated to continue dropping as long as flat rolled spots remain weak, and flats prices will likely continue to soften through at least the end of June.
Most HSS buyers are only making bare minimum purchases, and are instead still liquidating inventories--as would be expected, resale prices have also taken a tumble over the last few weeks. Meanwhile, while there are some import offers currently available, they aren't attractive enough for US buyers to commit. Turkey is offering HSS to the US at approximately $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck in US Gulf ports, but considering freight costs and the US domestic market's extreme uncertainty, even the approximately $7.00 cwt. ($154/mt or $140/nt) spread between import and domestic pricing hasn't improved import demand.