At press time, August prices for hollow structural sections (HSS) have not been announced, although sources say a price increase is expected to be announced in the first week of August.
Domestic tubing prices are expected to go up a notch, according to market sources. Tubing buyers have been anticipating a price increase announcement from domestic mills, and it now seems likely that the announcement will be made within the current week. Regardless of when the official announcement takes place, prices are headed up. Domestic mills are expected to increase prices anywhere from $60 /nt to $100 /nt ($3.00 cwt. to $5.00 cwt. or $66 /mt to $110 /mt) for August shipments.
Although prices are heading upwards for August shipments, there have been reports of prices stabilizing in recent weeks. Demand has been slowing and, in turn, prices in general have softened slightly. Some major mills have lowered prices just slightly for their customers, yet within the week, they will be increasing prices. With the softening demand, however, it cannot be said for certain that this price increase will be accepted.
Then again, there are not many alternatives to buying domestic. Most import offers are at unattractive levels, not to mention that the current offers, if booked, will not arrive until mid-to-late fourth quarter. SteelOrbis has heard that Turkish import offers are at around $68.00 cwt. to $69.00 cwt. ($1,500 /mt to $1,521 /mt or $1,360 /nt to $1,380 /nt) FOB loaded truck in Houston but there have not been any takers. In the meantime, Turkish offers, which are only for Grade B and heavy wall tubing, will most likely go down some more due to the weakening flat rolled market. In the low demand, high price environment, however, service centers are quite happy to only buy what they need and keep their inventory to a minimum.
Currently, domestic hollow structural section (HSS) prices range from approximately $73.00 cwt. to $74.00 cwt. ($1,609 /mt to $1,631 /mt or $1,460 /nt to $1,480 /nt) for A500 grade A and grade B hollow sections up to 6" in the Midwest regions. Some customers, in certain regions, may find prices slightly lower, though not for much longer.
This August HSS increase may be the last, at least for a little while. Flat rolled increases have mellowed out quite a bit from previous months. The most recent flat rolled price increase made by domestic mills was $40 /nt ($2.00 cwt. or $44 /mt) for September orders compared to earlier months where increases were in excess of $100 /nt ($5.00 cwt. or $110 /mt). Going forward, price stability is expected, though no severe downturn in the domestic price would appear to be on the cards.