Sources close to SteelOrbis have confirmed that the new approximate spot market price for US domestic hollow structural sections (HSS) tubing is now being heard at approximately $78.50 cwt. ($1,731/mt or $1,570/nt), FOB mill, which reflects an $8.50 cwt. ($187/mt or $170/nt) drop from our last report on August 23.
Still-softening HRC prices, sources note, have continued to place downward pressure on the structural tubing market.
HSS prices have fallen by approximately 35% since their peak in September of last year, and multiple sources continue to report that the spread between HRC and HSS tubing (which as of today, is approximately $39.50 cwt. ($871/mt or $790/nt)) is “unsustainable.”
“One of two things needs to happen,” the source said. “Either hot rolled needs to come up or structural [tube] to come down, and no one expects that hot rolled is going to jump back up.”
Consequently, service center sources say they’ve been reluctant to “stock heavy” out of concern that spot prices will be softer by the time their steel is delivered.
Additional price revisions are expected in the upcoming weeks.