US HSS spot market price spread starts to narrow

Wednesday, 12 October 2016 10:32:29 (GMT+3)   |   San Diego
       

Two weeks ago, SteelOrbis reported hearing spot market prices for US domestic hollow structural sections (HSS) tubing that spanned from $39.00-$42.00 cwt. ($860-$926/mt or $780-$840/nt) ex-works, depending on the region of the mill and tonnage purchased.

This week, the average transaction range has narrowed by $1.50 cwt. ($22/mt or $20/nt) on the top end, which brings the most commonly heard transaction range to $39.00-$40.50 cwt. ($860-$893/mt or $780-$810/nt), ex-mill.

Sources in the Southeastern US report paying “at or near the $40.50 cwt. ($893/mt or $810/nt) range, ex-mill” while sources in the Midwest have confirmed that “the bulk of transactions are taking place “at or slightly below $39 cwt. ($860/mt or $780/nt), ex-mill.”
 
Many sources report that market activity has slowed and inventory levels are dwindling.

“Hot rolled coil pricing seems to be moving down a notch almost every day,” one Southern-based source said, adding that falling US domestic scrap prices have helped place downward pricing pressure on the US flat rolled steel market. “If hot rolled keeps falling HSS will keep adjusting right behind it, so no one wants to buy until they’re sure scrap has finally leveled and hot rolled has stopped sliding.”

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