US domestic spot prices for hollow structural sections (HSS) continue to remain soft as the market awaits more stable market activity.
US domestic hot rolled coil (HRC) prices are still the main driving force behind domestic HSS price movements, as there isn't enough HSS demand to keep current prices firm. In the US Midwest, spot prices for HRC, while largely unchanged over the past month, began showing signs of softening once again last week. HSS spot prices have already fallen about $1.00 cwt. ($11/mt or $10/nt) on the high end in the last two weeks into the range of $53.00-$54.00 cwt. ($1,168-$1,190/mt or $1,060-$1,080/nt) ex-Midwest mill.
Official West Coast HSS spot prices haven't moved much since early June, but most orders are being placed on the lower end of $56.00-$57.00 cwt. ($1,235-$1,257/mt or $1,120-$1,140/nt) ex-mill. However, mills have been heard cutting deals to fill order books for as much as $1.00 cwt. under the range, as competitors' prices in the US Midwest continue to drop. Even with freight surcharges, West Coast buyers tell SteelOrbis that placing an order at a Midwest mill may actually be less expensive, and "make more sense" than buying from a local mill on the West Coast. Consequently, HSS spot prices on the West Coast are predicted to fall at least $1.00 cwt. by early July.
Looking offshore, while import offers are plentiful, interest is still limited. A number of orders continue to be placed south of the border in Mexico, as Mexican mills have also been heard willing to "make a few deals" for larger orders. Prices from tubing mills in Mexico will continue to mirror the US domestic market-- possibly declining slightly in July. For now, offer prices are still in the range of $53.00-$54.00 cwt. ($1,168-$1,213/mt or $1,060-$1,100/nt) DDP loaded truck in US West Coast ports, and $50.50-$52.50 cwt. ($1,113-$1,157/mt or $1,010-$1,050/nt) DDP loaded truck in US Gulf Coast ports.
Other import offers are coming from Korea, but US-buyer interest is almost non-existent. Korean mills have dropped their prices about $1.00 cwt. ($22/mt or $20/nt) since early June and are now currently offering HSS to the US in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports. Turkish mills are offering HSS to the US as well, at levels approximately $1.00 cwt. above Korean prices.
