The most commonly heard spot market price transaction range for US domestic hollow structural sections (HSS) tubing may have held steady since our last report two weeks ago, but sources close to SteelOrbis say that in light of the three, back-to-back price increase announcements that have been put out by US domestic flat rolled steel mills, they expect US HSS mills will soon announce a second price increase.
On Nov. 7, US domestic HSS producers announced they would be raising spot market prices by $3.50 cwt. ($70/nt or $77/mt), effective immediately. After the announcement, HSS tubing spot prices firmed by $2.00 cwt. ($40/nt or $44/mt) on the lower end and a $1.50 cwt. ($30/nt or $33/mt) increase on the top end from the previously heard range. That brought the current average transaction range to $40-$41 cwt. ($800-$820/nt or $882-$904/mt) ex-Midwest mill.
Today, prices have ticked up another $1.00 cwt. ($22/mt or $20/nt), which brings the current spot market price range to $41-$42 ($904-$926/mt or $820-$840/nt) ex-Midwest mill.
“This range won't last long. I am surprised [the mills] have not announced another increase already,” one source said. “I would not be surprised if it happened any time now.