The varied price increase announcements from US domestic tubing mills are displaying a lack of confidence in an already uncertain market. On Monday, Atlas Tube told customers it would be raising prices $2.50 cwt. ($55/mt or $50/nt) immediately with new orders, and was swiftly followed by Independence Tube, Bull Moose Tube and others. However, after Southland Tube and Hanna Steel Corp only raised prices $1.50 cwt. ($33/mt or $30/nt), sources tell SteelOrbis that the other mills have now dropped their original increases down to $1.50 cwt. Although the HSS increase was the expected reaction to an approximately $2.50 cwt. price increase from flats mills about two weeks ago, flat rolled spots are only reflecting a portion of the increase announcement. Further, HSS buyers contend that demand for tubing is not strong enough to warrant a significant increase until flat rolled prices firm further.
Nevertheless, should flats mills issue a second increase (as some now anticipate) to push through the first one, HSS mills are likely to follow with a two-pronged increase of their own. Just two weeks ago, HSS mills lowered prices $1.50 cwt. to about $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) ex-Midwest mill. So while mills are likely to begin pushing for orders at $45.00-$45.50 cwt. ($992-$1,003/mt or $900-$910/nt) ex-Midwest mill on HSS in the next week or so, for now spots remain at previously reported levels. Although a few buyers have been doing some restocking this week in case prices do continue to firm, purchasing activity remains on an as-needed basis.