Spot prices for Midwest US hollow structural section (HSS) tubing has remained stable since our last report two weeks ago, as previously announced increases on Hot Rolled Coil (HRC) have yet to be absorbed into the marketplace.
Most domestic spot offers have trended sideways since our last report and continue to be seen in the approximate range of $45.00 cwt. to $46.00 cwt. ($992/mt to $1,014/mt or $900/nt to $920/nt) ex-Midwest mill. What has changed, though, is that some deals may be available slightly below that range.
While immediately-effective increases on flats products had been rolled mid-April out by both Midwest and West Coast mills, the West Coast is the only part of the country experiencing any real acceptance of the pricing announcements; with the $3.00 cwt. ($66/mt or $60/nt) increase announced by UPI and CSI having gained traction. Not surprisingly, while Midwest pricing for HSS has remained neutral, West Coast pricing has begun to tick up. SteelOrbis has learned that two Los Angeles-based tubing manufacturers Tuesday announced a $2.50/cwt. ($55/mt or $50/nt) increase, effective as of May 17, bringing West Coast spot pricing to the approximate range of $49.00 cwt. to $50.00 cwt. ($1,080/mt to $1,102/mt or $980/nt to $1,000/nt). While it's believed there may be some deals available below this range for significant tonnage, most, if not all buyers, are not placing large orders unless the product is already sold.
Activity within the construction sector, though, is still improving. In a May 3 press release, the Department of Commerce reported that construction activity in March increased by .02 percent (the first rise for the industry since October of 2009), possibly related to stimulus spending. However, people within the steel industry have yet to indicate that they are experiencing any measurable uptick in orders because of it. HSS is still being bought and sold, but activity within this market sector is relatively quiet.
Looking offshore, the only real player for HSS tubing is Turkey, which continues to have offerings in the approximate range of $41.00 cwt. to $42.00 cwt. ($904/mt to $926/mt or $820/nt to $840/nt), duty-paid, FOB loaded truck in Gulf Ports, which reflects no increase from prices reported two weeks ago. For now, at least, interest in offshore product is continuing to trend weak.
Data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrates that the total import tonnage of HSS increased during the month of April with 54,650 mt (license data) being reflected by the most recent (May 4) update. This denotes a climb in import tonnage from the 30,908 mt (preliminary census data) reported for March. The leading importer of HSS was Luxembourg, at 16,759 mt.