Even as US domestic hollow structural sections (HSS) mills insist on higher prices in line with the third round of price increases, buyers are keeping inventories lean. While sources generally agree that mills aren't surrendering previous price gains, spot prices are increasing slower following the latest round of price increases amid a lack of confidence from customers. Spot prices are up about $0.50 cwt. ($11/mt or $10/nt) to $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt) ex-Midwest mill in the last two weeks, but spots are still about $1.00 cwt. ($22/mt or $20/nt) below official mill asking prices. That could change in the next week or so, as buyers report having been able to place orders at pre-increase levels following the third round of increases two weeks ago.
Hedge buying is largely non-existent in the domestic tubing market, as few are confident that the higher prices are sustainable for the long term. Demand is decent, but not strong enough to carry the market should any weakness develop in the domestic flat rolled market. For now, US domestic hot rolled coil (HRC) spot prices are stable to up, but sources in that market are also unsure prices will hold up through late summer and early fall. As a result, regardless of whether HSS prices trend higher in the coming weeks, purchasing activity is likely to remain unchanged. Therefore, US buyers aren't flocking to book futures, although a few orders of Korean HSS at $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) DDP loaded truck in US Gulf ports have been placed throughout July.