Two weeks ago, there were soft rumblings that US domestic hollow structural sections (HSS) tubing producers were talking about rolling out an increase. Today, the situation is trending different. US domestic scrap prices took a tumble this month, and settled approximately $10/lt lower than initially anticipated in many regions of the US. US domestic hot rolled coil (HRC) prices have also started to soften, which has led a number of service center sources to indicate a belief that HSS could start to correct as well. “Prices definitely aren’t going up,” according to one Midwest-based service center source. “If anything, I think we’ll see a $10-$20/nt decrease in the next month.” For now, though, the most commonly reported transaction range has held steady, at $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill, although deals at the lower end of that range are becoming more and more common.
In terms of imports, it’s been relatively quiet, according to sources. “Everyone pretty much stepped out of the market because they’re winding down for years’ end,” according to a Texas-based trader source. “Offshore mills are expected to come back with new offers in the next week or two, and I think at that point people will be more willing to book.” Although new offer prices are not yet available, previous ranges from Korea were available 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 were trending about $2.50 cwt. ($55/mt or $50/nt) higher.