Activity within the
US domestic hollow structural sections (HSS) market continues to be stable, according to sources close to SteelOrbis, but overproduction by
tubing mills continues to hinder the market. Lead times are short, according to one Midwest-based source, who noted a one- to two -week delivery time on most ex-mill orders.
Oversupply compounded by insufficient demand has placed downward pricing pressure on the market, with prices softening by approximately $1.50 cwt. ($33/mt or $30/nt) since our last report. The new average spot price transaction range is now trending between $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill. Service center sources say they are tightly managing inventories and are only making purchases to fill gaps. This trend is expected to continue until market players feel confident that the market has bottomed out.