The most commonly reported spot price transaction range for US domestic hollow structural sections (HSS) tubing has increased by approximately $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt) since our last report two weeks ago, which brings the current average ex-Midwest mill spot price to $40.00-$40.50 cwt. ($882-$893/mt or $800-$810/nt).
Last week, US domestic HSS producers announced they would be raising prices by an additional $5.00 cwt. ($110/mt or $100/nt) effective with June 6 shipments, citing “rising raw materials costs.”
“Everyone expects the June increase is going to take hold,” one Midwest-based source said. “The bigger question, that no one has an answer for, is when the hammer is going to drop, because everyone’s afraid of a pricing crash.”
On Dec. 30, 2015, SteelOrbis reported that the then-current average HSS spot market price range was trending at approximately $33.00-$34.00 cwt, ($728-$750/mt or $660-$680/nt), ex-Midwest mill.
As with other steel market product segments, multiple sources say they’re concerned that prices have firmed “too far too fast” and question whether current price points, which are supply driven as opposed to being demand driven, are sustainable.