Two weeks ago, spot prices for
US domestic hollow structural sections (HSS) pricing dipped by approximately $1.50 cwt. ($33/mt or $30/nt); since then, prices have settled down by another $1.00 cwt. ($22/mt or $20/nt) bringing the current average spot price transaction range down to $40.00-$41.00 cwt. ($882-$926/mt or $800-$820/nt) ex-mill. Buyers previously said they wouldn’t be surprised to see the market come down again; flat rolled prices have been soft and the
US domestic scrap market has been without a sense of stability. Others say that if the rumored imminent price increase announcement from flats mills doesn’t happen sooner than later, HSS prices could dip another $20/nt before the end of the month. “This isn’t about demand, demand is still pretty good,” according to one source, “it’s about weakness in flats and scrap that’s still trickling downhill.”
In terms of import prices, Turkish offers are still trending at approximately $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) DDP loaded truck in
US Gulf coast ports, while Korean offers are still available up to $1.50 cwt. ($33/mt or $30/nt) below that range on larger tonnages. These low prices are certainly raising some eyebrows, according to trader sources, but there hasn’t been a mad-rush on booking futures orders.