Spot market prices for
US hollow structural sections
tubing has continued to firm since our last report two weeks ago. SteelOrbis sources have confirmed that spot market prices have inched up $1.00 cwt. ($22/mt or $20/nt) on the bottom end from levels seen in mid-March, which brings the current average transaction range to $50-$51 cwt. ($1102-$1124/mt or $1000-$1020/nt), ex-mill.
Today’s price points are a stark contrast from late March 2016, when prices were trending at $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt), ex-Midwest mill.
Sources close to SteelOrbis have mixed feelings about the current state of the market.
“I think that the consolidation of producers within the HSS market has stabilized pricing and HSS mills are being more disciplined in their pricing practices,” one source said. “We have been very busy for the last 3 months and we don’t expect pricing to be as volatile as it has been in the past.”
A second source had a slightly different take.
“Everyone is afraid current level will not sustain itself. I believe we could see an adjustment down in the next week or so if flat rolled does not move upward,” the source said. “I would agree that the consolidation has created a bit more discipline, however, it has also increased the spread from production cost to sale price. Markets do what markets do and there are a lot of factors that go into the mix. I think that based on what I am seeing there could be a small adjustment down soon, especially since there is reluctance at the service center level to buy into the current price level.”