US domestic hollow structural sections (HSS) spot prices have dipped again, and additional softening appears to be on the horizon.
Purchasing activity remains stagnant in the US domestic tubing market as buyers await the price downtrend to cease. However, with US domestic hot rolled coil (HRC) spot prices now at $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill--down yet another $1.00 cwt ($22/mt or $20/nt) in the last two weeks--and still softening, any relief from falling HSS prices isn't likely to come in July. Therefore, unless it's to plug a few inventory holes, or to make a purchase for already-sold projects, most HSS buyers are sitting tight until both the domestic flats market, and in turn the domestic HSS market, becomes more stable.
In the last two weeks, US domestic HSS spot prices have slipped $0.50 cwt. ($11/mt or $10/nt) into the range of $50.50-$51.50 cwt. ($1,113-$1,135/mt or $1,010-$1,030/nt) ex-Midwest mill. However, deals below the range are not uncommon. For larger orders, deals up to $1.50 cwt. ($33/mt or $30/nt) under the range have been heard, as the market remains too anemic for mills not to make deals. And another downtick in HSS spot prices of at least $1.00 cwt. is predicted as soon as late this week/early next week, especially if domestic HRC spot prices slip again.
South of the border, Mexican tubing prices for the US, which have been unchanged over the last month, have now come down in response to falling US domestic HSS spot prices; but even so, interest is limited. Mexican prices have fallen about $2.50 cwt. ($55/mt or $50/nt) since early July into the range of $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) DDP loaded truck in US Gulf ports.
Elsewhere, traders tell SteelOrbis that with activity non-existent, and a soft domestic tubing market in Turkey, Turkish mills prefer not to offer export tubing prices for the US right now. The last Turkish prices, heard about two weeks ago, were approximately $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports, and too high to rouse any US interest.