This Monday, US hollow section producers announced a $2.00 cwt. ($44 /mt or $40 /nt) price increase. Atlas Tube, the leading producer of square and rectangular
tubing in the US, initiated the price hike, but other Midwestern mills quickly followed its lead. The move was prompted by the increase in US and import flat rolled prices. This significant increase is supported by the strong demand and will most likely be accepted by the buyers.
Flat rolled mills, primarily
Nucor, lifted all special deals, affected the cost of raw materials for
pipe and tube mills. Some other flat rolled mills, such as AK Steel raised their prices for May shipments already. Import flat rolled prices have been steadily going up as well.
Domestic hollow section prices are reported at above $42.00 cwt. ($926 /mt or $840 /nt ) and large sizes like 14” (355 mm) and 16” (406 mm) are selling for an amazing $70 cwt. ($1,543 /mt or $1,400 /nt) due to lack of domestic competition. However, 14” and 16”
tubing is available from
China,
Japan, South
Korea and certain Western European countries. Still some fabricators require quick deliveries and custom lengths, and in certain cases they may have to use domestic tubes.
The import pricing situation almost mirrors the domestic situation. With the skyrocketing flat rolled prices, Turkish
tubing offers jumped up by $2.00 cwt. ($44 /mt or $40 /nt) since our last report on March 10. Certain tube mills do not even offer because of the uncertainty of raw materials. However, certain Turkish
tubing mills are now offering $31.50 cwt. to $33.00 cwt. ($694 /mt to $728 /mt or 630 /nt to $660 /nt) for FOB, loaded truck, US Gulf Coast ports. Grade B usually sells with a $10 nt - $20 nt ($0.50 cwt. to $1.00 cwt. or $11 /mt to $22 /mt) extra from
Turkey.
The West Coast is mostly dominated by Chinese and Korean
tubing. Chinese
tubing is now being offered between $32.00 cwt. and $34.00 cwt. ($705 /mt to $750 /mt or $640 /nt to $680 /nt) FOB West Coast ports. Grade A or B is usually the same price from
China. This reflects a $1.00 cwt. ($22 /mt or $20 /nt) increase since our last report. As hot rolled prices continue to rise in Asia, we may see continued price hikes for
tubing as well.