As hollow structural sections (HSS) spot prices continue to move rapidly lower in the Midwest, West Coast tubing mills are having a harder time keeping their own spot prices intact.
US domestic tubing mills on the West Coast have been able to keep HSS spot prices firm in the range of $54.00-$55.00 cwt. ($1,190-$1,213/mt or $1,080-$1,100/nt) ex-mill throughout July, but amidst low activity and domestic competition, West Coast mills may not be able to hold on to current prices much longer. West Coast buyer sources tell SteelOrbis that with Midwest HSS spot prices now substantially lower than prices from their local producers, even with freight charges, buying from a Midwest mill may still be a better deal.
HSS prices in the Midwest are now $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-mill, reflecting a $1.50 cwt. ($33/mt or $30/nt) drop from spot prices two weeks ago--$5.00 cwt. ($110/mt or $100/nt) below spot prices on the West Coast. And another downward move in the Midwest is expected by early August, as demand levels remain weak, and domestic hot rolled coil (HRC) spot prices continue to trend lower, falling another $1.00 cwt. ($22/mt or $20/nt) on the low end to $33.00-$35.00 cwt. ($728-$772/mt or $660-$700/nt) ex-Midwest mill in the last week.
On the import side, offers are quiet with the exception of Mexico. After falling $2.50 cwt. ($55/mt or $50/nt) two weeks ago, Mexican tubing prices have stayed neutral, and are still largely in the range of $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) DDP loaded truck in US Gulf ports. Booking activity for HSS is still decent south of the border, and in order to keep it that way, Mexican mills are expected to drop their prices to the US soon to reflect the softening US market.