Spot market prices for US domestic HSS tubing continue to be stable, at an average transaction price of $44 cwt. ($970/mt to $880/nt), ex-mill, but sources close to SteelOrbis expect that a revision is on the horizon.
“The mills’ book price is still the same, but I expect they’re going to adjust that down at any minute,” a source said, noting that in some cases, he’s been able to buy at $42.50 cwt. ($937/mt or $850/nt), ex-mill, when buying material for larger fabrication jobs.
“At this point, we’re not buying anything unless we’ve already sold it,” he continued. “Our strategy is to take our inventory as low as we can, and hopefully, re-stock at the bottom of the market.”
Another source said that although a lot of the fabrication jobs’ start dates have been pushed back, they’re still ordering material. A lot of this is happening, he said, because “customers are worried that if there are future disruptions to the supply chain, they won’t be able to get their material.”
However, the continued activity is by no means an indication of a “robust” market. Overall demand is described as being “lackluster at best.”