In our last analysis a week ago, market sources said they believed another HSS price increase was imminent. And while the increase did not land by the end of last week (as many had expected it would), today, Atlas Tube has announced plans to raise spot market prices by $6.25 cwt. ($138/mt or $125/nt), effective with all new orders.
The mill didn’t state their reasoning for the latest increase; however, continued upticks in US HRC pricing, coupled with the belief that scrap will settle up by $50/gt during next month’s buy cycle, are likely the cause.
For now, current prices are unchanged week-over-week and continue to trend at $93-$94 cwt. ($2,050-$2,072/mt or $1,860-$1,880/nt), FOB mill, market sources say they believe today’s increase will be accepted. Once that happens HSS prices will be trending at around $100 cwt. ($2,205/mt or $2,000/nt), FOB mill.
This is a sharp shift from late May 2020, when prices were heard at $42-$43 cwt. ($926-$948/mt or $840-$860/nt), FOB mill.
The remaining tube mills are expected to announce shortly.