Spot prices in the US domestic hollow structural sections (HSS) market have dipped again and are expected to continue falling as long as flat rolled prices are trending lower. Tubing mills had been trying to keep prices in the previously reported range of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill, but prices have slipped by another $1.00 cwt. ($22/mt or $20/nt) in the last couple weeks to $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) ex-Midwest mill. Sources tell SteelOrbis that for large fabrication projects, mills are willing to drop prices slightly lower, but are generally trying to prevent any steep pricing drop. But given that hot rolled coil (HRC) spot prices have fallen by about another $1.50 cwt. ($33/mt or $30/nt) in just the last week, tubing mills are likely to drop prices further as October progresses.
Spot prices in the flat rolled market have been falling quickly and the decline isn't anticipated to slow for at least a few more weeks. Scrap has been the primary factor pushing down flats prices the last few weeks, and with busheling scrap dropping $50-$60/lt in October, flat rolled prices likely have more room to fall. As tubing demand is not strong enough to withstand the downward pressure itself, so long as flat rolled prices are falling, so will tubing prices. Consequently, import activity is essentially silent, and those looking to purchase material outside of the domestic market are turning to Mexico, where prices are anywhere from $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below US domestic spots, depending on size range.