Initial cracks within the US domestic flat rolled market and extremely cautious hollow structural sections (HSS) buying patterns have resulted in tubing mills officially lowering prices. Published HSS prices in the US are poised to drop anywhere from $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt) in the next couple weeks--sources tell SteelOrbis that the price adjustment has already started in parts of the Northeast. The correction will bring official prices to $48.00 cwt. ($1,058/mt or $960/nt) ex-Midwest mill, although spot transactions have been taking place at lower prices for weeks now. For larger orders, spots never reached official asking prices. But until domestic mills officially drop prices, the spot price range will be remain at $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill, down $1.00 cwt. on the high end since late August.
It's uncertain whether the imminent price drop will be followed by additional price declines--if domestic hot rolled coil (HRC) spot prices don't slip substantially, tubing mills will attempt to keep their own prices firm as well. In the last few weeks, HRC spots have lost a little ground--about $0.75 cwt. ($17/mt or $15/nt)--but are soft and are under moderate downward pressure. The HSS market's uncertain future is keeping service center buyers especially cautious, therefore keeping import interest at bay despite attractive offshore prices from Korea. Korean offer prices in the $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) DDP loaded truck in US Gulf ports range have garnered a few orders. However, buyers tell SteelOrbis that with many projects requiring primarily domestically-produced material, imports aren't always a viable option, regardless of price.