US domestic hollow structural sections (HSS) spot prices have declined slightly over the last couple weeks, succumbing to downward pressure from a softening domestic flats market. HSS spot prices are down to $49.50-$50.50 cwt. ($1,091-$1,113/mt or $990-$1,010/nt) ex-Midwest mill, reflecting a $1.50 cwt. ($33/mt or $30/nt) drop on the high end in the last two weeks. Throughout February, domestic hot rolled coil (HRC) spot prices fell about $2.00 cwt. ($44/mt or $40/nt) while HSS prices were able to hold on; however, sources tell SteelOrbis that in the last couple weeks, tubing mills have been slowly relinquishing their grip on spot prices now that buyers have slowed purchases in anticipation that prices have more room to fall.
As for imports, according to trader sources, activity has been somewhat decent over the past couple weeks as import offer prices were low enough for some US buyers to take the risk. However, Turkish offer prices, currently between $43.00-$43.50 cwt. ($948-$959/mt or $860-$870/nt) DDP loaded truck in US Gulf ports, are expected to increase in the next couple days in response to an increase in raw material and flat steel prices domestically in Turkey, making prices too high for most US buyers. For some smaller tubing sizes, buyers near US Gulf ports continue to turn to Mexico, whose sales prices in the US are about $3.00-$4.00 cwt. ($66-$88/mt or $60-$80/nt) below US domestic spot prices. But even activity south of the border has eased since mid-February.