SteelOrbis sources say that since it’s only been a few days since US tubing mills announced a $2.00 cwt. ($44/mt or $40/nt) increase for US domestic hollow structural sections tubing, mills are doing their best to ensure it sticks.
“I have not bought much this week and I am sure that other service centers haven’t rushed to buy a lot either,” a source said. “Time will tell. According to my sources, all of the ingredients are coming together the HRC to firm up. Although they don’t expect prices to go up fast and hard. If HRC firms, the HSS increase may hold.”
Another source agreed. “The major tube mills are implementing the increase, however I am not expecting a lot of buying just yet at the new numbers,” he said. “There were a lot of deals made for fourth-quarter buys at deal numbers so there will be limited new inventory buying in fourth quarter. I agree that the flat rolled increases represent the mills trying to draw a line in the sand to limit further erosion and are not based on true supply and demand market factors.”
Prior to the increase, spot market prices were holding at $42.50 cwt. ($937/mt or $850/nt) ex-works. This week, HSS is selling at an average of $44.50 cwt. ($981/mt or $890/nt), ex-works. Order activity is light.