In mid-September, rumors swirled that US domestic hollow structural sections (HSS) mills could roll out a price increase, but today, after US domestic scrap prices settled down about $20/lt for October buys and US hot rolled coil (HRC) prices have started to trend on the flexible side, HSS prices have started to slide. Prices have come down by about $0.50 cwt. in the past week, and according to one Midwest-based service center source, “I don’t think anyone is surprised about it.” And as it stands, if US scrap prices tick down another notch in November, HSS prices may continue to erode as well. For now, the most commonly reported spot price transaction range has dipped to $46.50-$47.50 cwt. ($1,025-$1,047/mt or $930-$950/nt), ex-Midwest mill, with the expectation that another $0.50 cwt. ($11/mt or $10/nt) drop is likely to be seen much sooner than later.
Looking offshore, everything continues to trend “sideways quiet” as offer prices out of Korea have held in the approximate range of $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck US Gulf coast ports, while offers from Turkish mills are trending about $2.50 cwt. ($55/mt or $50/nt) higher.