While most US domestic hollow structural section (HSS) mills such as Atlas Tube and Independence Tube raised prices $2.50 cwt. ($55/mt or $50/nt) about two weeks ago, Southland Tube and Hanna Tube only increased prices by $1.50 cwt. ($33/mt or $30/nt). As such, sources tell SteelOrbis that the other mills have now informed customers that they, too, will now only increase prices $1.50 cwt, signifying the weakness of the domestic HSS market and that unless domestic flats prices rise substantially, HSS spot prices aren't likely to see much movement through the end of the year.
Mills' price increases are effective for shipments after December 16-17, but according to industry insiders, while that's only a couple weeks away, many mills still have plenty of common HSS sizes on the ground that can be delivered sooner, and are being sold off about $1.00 cwt. ($22/mt or $20/nt) below current spot prices, which are in the range of $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill, as they were two weeks ago. Most service center buyers have plugged a few holes since the announcements, but with the end of the year only about five weeks away, inventories are mostly being liquidated rather than stocked--a number of distributor sources have told SteelOrbis that unless product will be delivered after January 1, it's not worth the risk.
It appears that US buyers do not have the same mentality when it comes to booking imports, however. Import tubing interest in the US is moderate, at best, although Turkish tubing prices are down $1.00 cwt. ($22/mt or $20/nt) in the last two weeks to $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) DDP loaded truck in US Gulf ports. As result of the nearly $5.00 cwt. ($110/mt or $100/nt) spread between US domestic and Turkish HSS prices in the US, a few orders have been booked; but for most, because short-term US domestic market visibility is minimal, and long-term visibility is essentially non-existent, futures buys are a risk they aren't willing to take.