US domestic hollow structural sections (HSS) mills have dropped prices once again amid minimal buying activity and downward pressure from the domestic flat rolled market. A few weeks ago, HSS mills dropped published prices to about $46.00 cwt. ($1,014/mt or $920/nt) ex-Midwest mill, but that move did little to improve spot market activity. Since then, mills have officially dropped prices another $1.50 cwt. ($33/mt or $30/nt) but are already actively quoting about $44.00 cwt. ($970/mt or $880/nt) ex-Midwest mill. Sources tell SteelOrbis that the decrease was meant more to align published prices with spot prices, which continue to be found even lower. HSS spot prices have fallen another $1.50 cwt. since early May and can now be found between $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) ex-Midwest mill. While a number of mills are adamant about keeping most transaction activity on the higher end of that range, certain mills have been reportedly offering deep discounts for larger customers as lead times remain as short as four weeks in some cases.
The US domestic flat rolled market's price deterioration is the main impediment to HSS mills keeping prices firm, and could continue to force HSS prices lower. Although flat rolled mills just announced $2.50 cwt. ($55/mt or $50/nt) price increases this week, it is too soon to fully gauge their impact. So as a result of the continued uncertainty in the US HSS domestic market, many smaller buyers are not considering imports whatsoever. However, larger HSS consumers indicate that with Turkish and Korean prices at $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US Gulf ports and $36.50-$37.50 cwt. ($805-$827/mt or $730-$750/nt) DDP loaded truck in US Gulf ports, respectively, they've been inclined to place a few tons with the offshore mills, as the spread between US domestic and import pricing is substantial.