Two weeks ago, there was a split consensus as to whether spot prices for US domestic hollow structural sections (HSS) tubing were flirting with their bottom or whether there was room for additional corrections; the latter prediction has materialized. Prices have settled down another $1.50 cwt. ($33/mt or $30/nt) since our last report bringing the current average spot market price range to $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt), ex-Midwest mill. Some sources close to SteelOrbis say that while they are concerned there’s still room for an additional $20/nt correction, the fact that US domestic HRC prices seem to have leveled has them hopeful that “the bleeding may have finally stopped.”
In terms of offshore offer prices, Turkish offers have dropped by a dramatic $5.00 cwt. ($110/mt or $100/nt) since our last report two weeks ago, bringing the current range to $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt), DDP loaded truck in US Gulf coast ports, while Korean offers are still available up to $1.50 cwt. ($33/mt or $30/nt) below that range for the “right-sized order.” Although some say they’re doing some offshore buying based on the attractive price, others say they’re going to hold off on hedge buys until they’re sure the US market has settled.