Ex-Midwest mill spot prices for US domestic hollow structural sections (HSS) have softened by approximately $1.00 cwt. ($22/mt or $20/nt) in the past two weeks, bringing the most commonly reported spot price range to $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt). Industry insiders say the reason for this is twofold. First, US domestic scrap prices have ticked down quite a bit since the middle of last month, and that trend is expected to cause a dip in flats prices before the end of the month. Second, a flurry of export HSS was purchased from Korean and Turkish mills in the latter part of 2013 and those cargos are set to start arriving in the near future. For now, buyers are filling inventory holes on an as-needed basis and are cautiously avoiding stock buys until the landscape becomes clearer.
Meanwhile, import HSS offer prices from Korea and Turkey have trended sideways since our last report a week ago, but buyers have slowed their purchasing activity. The most commonly reported transaction range continues to hold at $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt), DDP loaded truck US Gulf coast ports, but offshore bookings are becoming fewer and farther between.