Demand and order activity within the US domestic hollow structural sections (HSS) markets may be holding their own, but prices are starting to falter. “It’s not that we’re not selling steel, order activity has been pretty decent,” according to one Midwest-based source. But the substantial drop scrap prices this month, an additional forecast dip for March, coupled by ever-softening HRC prices have made it hard for tubing mills to keep the HSS spot market stable.
The most commonly reported spot price transaction range has ticked down by another $1.00 cwt. ($22/mt or $20/nt) since our last report two weeks ago, which has the current range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) ex-Midwest mill trending $2.00 cwt. ($44/mt or $40/nt) lower than levels seen in mid-January. Buyers for large fabrication jobs, who are wanting to book large-sized orders are likely to be able to negotiate deals between $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) below the current range.
Import prices, however, have held steady since our last report two weeks ago, with pricing from Korea and Turkey still holding at approximately $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck US Gulf coast ports, but as with our last report, the volatility within the US domestic market has interest in futures trending weak.