Sources close to SteelOrbis have said that increased willingness by US domestic HRC mills to negotiate spot market prices means that tube mills have also become amenable to negotiating deals for hollow structural sections tubing.
Although the current average transaction range has remained stable, at $58-$60 cwt. ($1279-$1323/mt or $1160-$1200/nt), ex-mill, “fewer and fewer” transactions are taking place at the top, and the price range is expected to narrow on the top end in the upcoming weeks.
“This is exactly the reason that buyers have been holding off,” a source said. “We’ve all believed that a correction was overdue. Now, it’s finally starting to happen.”
The question as to how much of a correction will take place has yet to be determined, although many believe it will be consistent with the predicted correction for US HRC prices.