The recently announced $2.00 cwt. ($44/mt or $40/nt) price increase announcement from Independence Tube, Maruichi Leavitt Pipe & Tube and Atlas Tube on hollow structural sections (HSS) may not be set to take effect until November 4, but whether any of it will be accepted has yet to be seen. As of early October, cracks within the
US domestic flat rolled market had led to an approximate $1.50 cwt. ($33/mt or $30/nt) dip in spot process for HSS, bringing spot prices to the range of $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt), ex-Midwest mill. But now the
flats market seems to be rebounding, with $1.00 cwt. ($22/mt or $20/nt) of an announced $2.50 cwt. ($55/mt or $50/nt) increase for
US domestic hot rolled coil (HRC) having already been accepted. For now, buyers and sellers continue to keep close watch on coil prices, wondering if HSS mills are merely testing the waters with the announcement. If the
flats increase sticks, HSS mills will get their increase, sources say, but on the flip side of that coin, should HRC spot prices once again begin to slip, the HSS announcement is not likely to gain any steam.
As for imports, offer prices from
Korea have held steady in the past two weeks and are still in the approximate range of $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) DDP loaded truck in
US Gulf ports. As in previous weeks, interest in booking futures remains scant at best, a trend largely tied to the fact that many
US construction projects require the use of domestically produced material.