In the last couple weeks, US domestic hollow structural sections (HSS) mills have lowered list prices, but the bulk of activity is already taking place under the new price level. Mills have taken official HSS prices down $1.50 cwt. ($33/mt or $30/nt), bringing asking prices down to $46.00 cwt. ($1,014/mt or $920/nt) ex-Midwest mill. However, spot prices are even lower. Even though demand is stable, service centers report stiff competition on new projects with many offering aggressive pricing to secure an order. Meanwhile, because service centers are unwilling to take stock of major inventory positions, mill lead times are short and sources report that floor stock is sometimes available for certain size ranges, for which lead times can be under four weeks.
The price decrease isn't anticipated to boost purchasing activity, at least not until some stability or upward momentum is observed in the US domestic flat rolled spot market. Hot rolled coil (HRC) spots have been weak the last couple months, and while some believe prices may be close to a bottom, prices remain soft. Therefore, it isn't surprising that HSS spot prices are now between $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill, down $1.00 cwt. ($22/mt or $20/nt) since late April, with customers booking larger orders easily attaining prices underneath those levels. Given the current state of the domestic market, import activity is still minimal. Mexican prices are about $3.00 cwt. ($66/mt or $60/nt) lower than US spots while offshore offers have grown especially competitive. Turkish mills are offering HSS to the US at $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US Gulf ports. The lower prices have prompted Korean mills to react and drop their prices to $36.50-$37.50 cwt. ($805-$827/mt or $730-$750/nt) DDP loaded truck in US Gulf ports.