Last week, SteelOrbis noted that market players within the US domestic hollow structural sections (HSS) tubing market were keeping close tabs on US HRC pricing; hot rolled prices had been drifting downward for several weeks and a rumor that flat rolled steel mills would soon announce a price increase were rumbling loudly.
That increase has since materialized. Today Nucor announced they would be raising US HRC prices by a minimum of $2.00 cwt ($44/mt or $40/nt), effective with all new orders. At the time this article was published, other flats mills have not yet announced, although it’s believed the announcements will be coming shortly.
Should the increase gain acceptance, it’s believed that US HSS prices, which are still trending in the range of $58-$60 cwt. ($1,279-$1,323/mt or $1,160-$1,200/nt), ex-mill, will firm as well, especially since overall market activity continues to be good.
“If the increase is accepted you can all but guarantee the tube mills will raise prices,” a source said. “Today’s prices are about $10.00 cwt. ($220/mt or $200/nt) higher than they were this time last year and the mills are going to want to keep that margin for as long as possible.”
Others agree, noting a belief that Section 232 tariffs “aren’t likely to be around forever.”
“Everyone knows the argument that this has been done in the name of national security falls flat. This has always been less about national security and more about domestic protectionism. The domestic steel mills are increasing capacity and they’re starting to recover,” a source said, also noting that Ford Motor Company has announced sweeping layoffs, citing the steel tariff as being a driving force in the decision.
“Although it’s impossible to predict when Section 232 will come to an end, what I think we can all agree on is that the domestic mills are going to want to make whatever money they can before it unravels.”