An increase from a hollow structural sections (HSS) mill early this week caught the market off guard, and its success remains in doubt. Bull Moose Tube's $2.50 cwt. ($55/mt or $50/nt) announced price increase this week was attributed to rising raw material costs, although many buyers say they're not convinced. While the announcement was a clear reaction to flat rolled mills' $2.00-$2.50 cwt. ($44-$55/mt or $40-$50/nt) increases about a week ago, flat rolled spot prices have not yet moved up as a result. Consequently, it wasn't a surprise when the HSS increase was not immediately followed by other producers, although sources indicated that given recent price declines in the HSS spot market, an announcement is likely sooner rather than later.
However, until flats prices firm, it is unlikely that tubing mills will be able to lift spot prices from their current range of $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) ex-Midwest mill, generally stable after falling two week ago--still, there are deals heard slightly lower for larger orders. The uncertain, but still overall weak HSS market is discouraging most from booking much offshore, although Turkish offer prices $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US Gulf ports, stable since mid-January, continue to attract sporadic order activity.