US domestic hollow structural section (HSS) tubing mills may be “clinging” to an average spot market price transaction range of $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt), ex-mill, but two sources close to SteelOrbis have confirmed that quiet deals up to $2.00 cwt. ($44/mt or $40/nt) below that range are available to select customers based on volume.
This increased willingness to negotiate, combined with this month's decline in scrap prices and softness within the HRC market, is likely to lead to an official price correction of approximately $1.00 cwt. ($22/mt or $20/nt) “in the near future,” sources say.
“Demand is steady,” a source said. “A month ago, I’d say it was busy, but things have lightened up. If Congress and the President can get an infrastructure bill passed, you’ll see business and pricing pick up.”
Another source agreed, citing belief that the upcoming elections may be impacting the market sooner than anticipated.
“It seems as if the 2020 Election cycle showed up six months early,” he said, “which could be playing into the current slowness.”