Over the past couple weeks, US domestic hollow structural sections (HSS) mills have attempted to enforce higher prices, but their success has been only marginal so far. While HSS mills revised an initial $2.50 cwt. ($55/mt or $50/nt) price increase earlier this month down to a more realistic $1.50 cwt. ($33/mt or $30/nt), actual transaction prices are only slightly higher than they were two weeks ago. A $1.50 cwt. price increase would put official prices at $47.00-$47.50 cwt. ($1,036-$1,047/mt or $940-$950/nt) ex-Midwest mill. However, sources tell SteelOrbis that while some mills appear less willing to negotiate the new prices, there are mills cutting deals, particularly on on-the-ground inventory and common sizes. But while mills are pushing for higher prices whenever possible, larger orders are still garnering a discount, and spot prices are up about $1.00 cwt. ($22/mt or $20/nt) in the last couple weeks to $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-Midwest mill.
Even so, only smaller buyers with less negotiating power are paying the high end of the range, and the majority of spot market activity is taking place on the low end of the range, and even slightly below in some cases. Nonetheless, because spot prices in the domestic flat rolled market have slowly been deteriorating the recent weeks, some buyers anticipate that HSS spots have more potential to slip than increase further in the near future. Import interest, meanwhile, is essentially non-existent, but Mexican offer prices can still be found in the range of $41.00-$43.00 cwt. ($904-$948/mt or $820-$860/nt) DDP loaded truck delivered into Houston, and even slightly below for smaller sizes.