Impact of second US HSS price increase uncertain due to holiday

Friday, 23 November 2012 00:41:29 (GMT+3)   |   San Diego
       

US domestic hollow structural sections (HSS) mills have rolled out a second price increase but its effect will likely remain unknown until at least next week. On Friday, Atlas Tube said that it would increase new HSS prices effectively with new orders by $2.50 cwt. ($55/mt or $50/nt)--the increase would be in addition to a $2.00 cwt. ($44/mt or $40/nt) increase announced in early November and is equivalent to the two price increases announced from domestic flats mills over the past month. By Monday, other HSS mills had followed the increases but sources tell SteelOrbis that they've yet to hear mills quoting the full increase amount.

But a short week this week due to the Thanksgiving holiday has resulted in little buying activity taking place. Spot prices have not moved since last week and remain between $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill, with some deals still reportedly taking place as much as $1.00 cwt. ($22/mt or $20/nt) below. On the US West Coast, mills have only just announced an initial $2.00 cwt. price increase, and its success also hinges on how successful Midwest mills are at boosting spots. Mexican HSS offer prices to the US have not moved since earlier this month and remain approximately $5.00 cwt. ($110/mt or $100/nt) below Midwest spot prices--although if US prices begin to rise, Mexican mills will attempt to raise prices as well.


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