US domestic hollow structural section (HSS) spot prices have continued their upward climb in the last couple weeks. Tubing mills have been increasingly pushing for the two announced increases that totaled $4.00 cwt. ($88/mt or $80/nt) announced in the final two months of 2011, which would put prices at approximately $50.00 cwt. ($1,102/mt or $1,000/nt) ex-mill. Although domestic HSS spot prices have not yet reached asking prices, they have gotten much closer, increasing about $1.50 cwt. ($33/mt or $30/nt) on the low end in the last two weeks to the current range of $48.50-$49.50 cwt. ($1,069-$1,091/mt or $970-$990/nt) ex-Midwest mill. Furthermore, a third increase, now expected to be as high as $2.50-$3.00 cwt. ($55-$66/mt or $50-$60/nt), is expected any day now.
While domestic tubing prices are poised to rise throughout at least this month, and even into February if domestic flats prices maintain their uptrend as many anticipate, US tubing buyers still are not feeling confident enough to book an order offshore that won't arrive until April. Nevertheless, Turkish offers are still available, and are in the current range of about $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports--up $2.00 cwt. ($44/mt or $40/nt) in the last two weeks--and are expected to increase further in the next couple weeks as Turkish tubing mills follow the US market's recent uptrend.