Market players within the US domestic HSS tubing market say they’re keeping close tabs on domestic HRC and scrap pricing, as it’s widely held that downward shifts within these markets will place downward pricing pressure on tube prices.
Today, SteelOrbis reported that US scrap prices are forecast to trend down during the October buy cycle. It’s further believed that HRC prices, which were heard at or slightly below $28 cwt. ($617/mt or $560/nt) as of late last week, have not yet bottomed. Some believe that HRC prices could come down by as much as $3 cwt ($66/mt or $60/nt) before the end of the year.
“Hot rolled is soft, scrap isn’t optimistic and if pricing comes down, tube prices are likely to follow,” a source said. Although current prices are still hovering at approximately $46 cwt. ($1,014/mt or $920/nt), deals are becoming more frequent.
“The market hasn’t officially shifted yet, but we expect that to happen in the very near future.”