Sources throughout the US have indicated a strong, widespread belief that US domestic hollow structural sections (HSS) tubing prices have not only peaked, but they may soon head for a downturn.
Current prices are still trending at $58-$61 cwt. ($1,279-$1,345/mt or $1,160-$1,220/nt), ex-mill, but some are wondering how long this level will last.
“Everyone I’ve talked to agrees that the market seems to have peaked. Demand is still decent but there’s been some downturn in the past few weeks,” a source said. “It hasn’t been significant bit’s been enough to notice."
Another source agreed, noting that some fabricators who have large jobs that are booked later in the year are holding off on buying because they believe prices are about to come down.
“Service centers who have lower cost inventory are starting to sell below replacement costs because they can still cost average and make money,” he said. “The idea is to get rid of inventory now to get into a good place to buy once the market reaches bottom.”
Although some people have indicated hearing a recent import HSS offer from Korean steelmakers at $50 cwt. ($1,102/mt or $1,000/nt), DDP loaded truck in US Gulf coast ports, for HSS in a limited range of sizes, few decided to book Korean tons due to lead times and uncertainty with regard to how much US HSS prices will correct.