Spot market prices for US domestic hollow structural sections tubing are still holding steady, sources note, but everyone agrees that current price points “are not going to last.”
Similar to last week, book prices for HSS tubing continue to be heard at $97-$98 cwt. ($2,138-$2,161/mt or $1,940-$1,960/nt), FOB mill, although deals “well below that range” are taking place in the market.
“I’m not going to tell you exactly where we bought at, but I can tell you that my company absolutely bought below $90 cwt. ($1,984/mt or $1800/nt), FOB mill,” a source said. A second source, who was also reluctant to provide the extent of the discount his company received, said he “also bought tubing in the $80s.”
“What I can tell you is that if we’re getting that price, we’re not the only ones that are getting that price,” he noted. “I can also tell you that while what we paid is definitely a deal from what the book price is, that I don’t know anyone who is rushing out to stock pipe right now because we all thing that prices need to adjust downward.”
The rational behind that, relates to current, still-too-large spread between HSS and HRC pricing. As of this morning, US HRC prices are being heard at approximately $45 cwt. ($992/mt or $900/nt), FOB mill.
“The spread right now is absolutely nonsensical,” a final source added. “One of two things is going to need to happen- either HRC prices are going to need to shoot up, which no one thinks is going to happen, or tube prices are going to have to come down.”
