Pricing for US domestic hollow structural section tubing is still trending in the range of $58-$60 cwt. ($1,279-$1,323/mt or $1160-$1200/nt), ex-mill, but sources close to SteelOrbis say that the slow downward drift in US hot rolled coil prices is having an impact on HSS pricing.
“I think it’s trending down. I wouldn’t be surprised if things came down another $2.00 cwt. ($44/mt or $40/nt) before the market levels out,” a source said, noting that current spot market prices are still about $12 cwt. ($265/mt or $240/nt) higher today than they were this time last year.
Others, however, point to planned mill outages that are scheduled to take place in November, adding that this will help push lead times out. “I think there’s room for some additional correction, but I don’t think the market is going to tumble,” the source said.
Business has slowed in recent weeks, market sources say, but that may be due to the expectation that prices are going to soften.
“It’s the same as gas. If you have a half tank and you see gas prices going down, you may wait a few days before you fill up,” he said. “As long as our clients have inventory and there isn’t an immediate need, if they think prices are still going down, they’re going to wait and see.”