As US domestic flats prices continue to move lower, hollow structural sections (HSS) prices have taken another hit, and are poised to continue falling this month. Last Friday, HSS mills began officially reducing asking prices by another $1.50 cwt. ($33/mt or $30/nt), following a $1.00 cwt. ($22/mt or $20/nt) drop a few weeks ago. The most recent decline puts official prices at approximately $47.50 cwt. ($1,047/mt or $950/nt) ex-Midwest mill, but with purchasing activity so minimal, mills have not been too resistant to making deals for up to $1.00 cwt. lower. For the time being, flat rolled spots are still trending down, and are likely to continue to soften throughout this month, especially following a $50-$70/lt drop in scrap prices (depending on grade and region) in June.
Domestic HSS buyers remain in inventory reduction mode, and are only making purchases if immediately necessary as they wait out the current downtrend. Such a mentality is preventing imports from having much, if any, impact on the US market, and futures are not a viable option for most buyers. Mexican mills are still competitive, dropping prices consistently to mirror the US' price drops, and are offering small-sized tubing to the US at a delivered price approximately $3.00 cwt. ($66/mt or $60/nt) below the domestic market.