US HSS market weakens as flat rolled prices decline

Friday, 12 April 2013 01:19:18 (GMT+3)   |   San Diego
       

The average spot price range on US domestic hollow structural sections (HSS) remains mixed, varying from mill to mill and order by order. While some mills have tried to be adamant about enforcing higher spot prices of about $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-Midwest mill, larger orders are easily garnering discounts. Demand levels are static and with flat rolled spot prices falling over $1.00 cwt. ($22/mt $20/nt) in the last couple of weeks, HSS mills have been faced with customers unwilling to pay previously higher prices. Deals about $1.00 cwt. under the spot price range are common, and some mills have offered even lower prices to fill anemic order books.

As long as hot rolled coil (HRC) spot prices are trending lower, HSS prices will remain under downward pressure--and if the lower-priced offers become increasingly widespread, the general spot range will likely drop in the next couple weeks.  HSS mills are almost exclusively competing with one another for orders as futures are too much of a gamble for most. Korean mills are offering HSS at $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US Gulf ports, too high while expectations point to a probable decline in US domestic prices in the near term.


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