Since our last report two weeks ago, sources tell SteelOrbis that US domestic hollow structural section (HSS) mills rescinded one-third of their $3.00 cwt. ($66/mt or $60/nt) price increase announced in early January, bringing domestic HSS asking prices down $1.00 cwt. ($22/mt or $20/nt) from early February to $52.00 cwt. ($1,146/mt or $1,040/nt) ex-Midwest mill. HSS demand has actually improved over the last couple weeks, and service center buyers report increased inquiries and project-related activity. Even so, the HSS market isn't stable enough to hang on to spot prices in the range of $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) ex-Midwest mill --unchanged over the past couple weeks--without support from flats prices, which continue to slowly soften.
While spot prices could hold steady for a few more weeks, there is potential for some price erosion, which has resulted in most buyers only purchasing what can be quickly sold so as not to overstock inventories. Despite uncertainty over the immediate direction of domestic spot prices, import activity has been decent in the last couple weeks with Korean mills offering tubing to the US at around $42.50-$43.00 cwt. ($937-$948/mt or $850-$860/nt) DDP loaded truck in US Gulf ports for May arrival; however, those offers closed earlier this week. US buyers also continue to place consistent orders with Mexican mills at $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck delivered into Houston.