Last week, US domestic hollow structural sections producers announced they would be raising prices by $1.50 cwt. $33/mt or $30/nt), effective immediately. Although a great number of HSS market players were skeptical that the price increase would stick, especially since US flats mills’ December price increase attempt fell flat, HSS spot prices have, in fact, firmed by mills’ desired range.
Current US domestic HSS spot prices are now reported to be in the approximate range of $34.50-$35.50 cwt. ($760-$783/mt or $690-$710/nt), ex-Midwest mill. SteelOrbis sources, however, feel that this week's flat rolled price increase announcements will lead HSS producers to try for a second increase of their own. The flats price increase announcements, as previously reported, are all tied to firming within the US domestic scrap market, as this month's prices within many regions of the US settled up by as much as $20.32-$25.40/mt ($20-$25/gt), depending on the cut and grade.
“The tube mills are simply trying to recover the losses they sustained in 2015,” one source said. “A lot of people are still scared of booking imports and it’s not surprising that tube mills are trying to capitalize on that.”