As previously predicted, spot prices for Midwest US hollow structural section (HSS) tubing have ticked down approximately $1.00 cwt. ($22/mt or $20/nt) since our last report two weeks ago, with most ex-Midwest offerings for this product now being seen in the approximate range of $44.00 cwt. to $45.00 cwt. ($970/mt to $992/mt or $880/nt to $900/nt). Ex-West Coast pricing has ticked down about $0.50 cwt. ($11/mt or $10/mt), and is currently being reported in the approximate range of $46.00 cwt. to $47.00 cwt. ($1,014/mt to $1,036/mt or $920/nt to $940/nt) although it continues to be indicated that those who are looking to make more sizeable purchases, both ex-Midwest and ex-West coast, are in a strong position to negotiate due the few-and-far-between nature of these types of orders, with several West Coast buyers having indicated being able to purchase by as much as $1.50 cwt. ($33/mt or $30/nt) below mills' published prices.
With the sustained softening seen for hot rolled coils (HRC), the downtick in transaction pricing for HSS is expected to continue in the coming weeks- especially considering that domestic HSS prices have, until now, held relatively stable. And according to one West Coast service center "nothing is really being committed to right now in terms of order placement". Mills throughout the US are continuing to attempt to hold their ground on pricing models, not wanting to give profits away. But the biggest challenge, for now is that, much like with the stock market, people aren't all that excited to invest their money in product if prices are on a downswing.
In terms of current offshore offerings, Korean offers have actually increased by approximately $1.50 cwt. ($33/mt or $30/nt) since our last report two weeks ago and are now being seen in the range of $42.00 cwt. to $43.00 cwt. ($926/mt to $948/mt or $840/nt to $870/nt), duty-paid, FOB loaded truck to the West Coast, however, it's been reported that interest at both the lower, and newly revised pricing levels, has been light.
In other import news, as of July 13, import tonnages of HSS tubing into the US are at 9,452 mt (license data). At current, the largest offshore importers of structural pipe and tube are Korea, at 2,930 mt; and the United Kingdom, at 2,528 mt. For the month of June, total import tonnages for HSS were at 39,281 mt, with the largest importers of this product being Korea, at 10,280 mt and Luxembourg, at 5,491 mt.