After moving lower two weeks ago, US domestic hollow structural sections (HSS) spot prices have held steady in the current range of $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill. But with US domestic flat rolled mills announcing price increases in the last week, tubing mills have withdrawn a few unconfirmed lower-priced offers in case flats mills are able to collect part of the increase. Sources tell SteelOrbis that if domestic flats prices do begin to rise, tubing mills will also issue a price increase, likely for about $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt). One Southeast distributor explained that when tubing mills were forced to rescind a $2.00 cwt. increase in late September, it "erased some of their credibility," and prices then fell substantially in the subsequent weeks; therefore mills are trying to avoid "jumping the gun" this time around.
If an HSS price increase is announced (and implemented), it would be especially good news to service center buyers who have seen the value of their lean inventories decline substantially over the last couple months. Buyers still aren't getting their hopes up just yet though, and are instead bracing themselves to make hedge buys if necessary, or continue to make small as-needed purchases to make it through the end of the year.
With the domestic HSS market growing ever-more uncertain, most US buyers are not even considering booking offshore. However, Turkish tubing offers to the US in the range of $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports, down $1.25 cwt. ($28/mt or $25/nt) in the last two weeks, may begin to look more appealing if US domestic mills begin to push for higher spot market prices in the coming weeks.