In the last couple weeks, US domestic hollow structural sections (HSS) mills announced a price increase that was almost immediately partially retracted, but the overall market has experienced little improvement. HSS mills waited just under a week following a $2.50 cwt. ($55/mt or $50/nt) flat rolled price increase before announcing a comparable increase of their own earlier this month. However, just days later, a few mills, including Independence Tube and Southland Tube, dropped the increase down to $1.50 cwt. ($33/mt or $30/nt), which sources said was to better match lukewarm demand levels and skepticism from customers over such a steep initial hike. The increase puts official prices at around $47.50-$48.00 cwt. ($1,047-$1,048/mt or $950-$960/nt) ex-mill, but general spot level of $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-mill is still valid, although the low end of the range may only be available for the largest customers.
On the US West Coast, mills including Hannibal Industries and Vest Inc. have also raised prices $1.50 cwt. in the last week or so to firm spot prices off a low of about $46.50-$47.50 cwt. ($1,025-$1,047/mt or $930-$950/nt) ex-mill, depending on the mill. As with the Midwest, however, the success of the HSS increase hinges almost entirely on whether flat rolled mills are able to push through their own announced increases. Flat rolled spots have firmed in the last couple weeks, but not significantly and it is preventing any real upward momentum in the HSS market. Until the domestic outlook is more positive, imports will continue to be of little interest to most buyers, with the exception for those located near US Gulf ports, where Mexican offers at about $4.00 cwt. ($88/mt or $80/nt) below US domestic spots are at workable level.