Sources close to SteelOrbis have confirmed that while the “official” spot market price range for US domestic hollow structural sections (HSS) tubing is still trending at $115-$119 cwt. ($2,535-$2,624/mt or $2,300-$2,380/nt), FOB mill, deals are increasingly available.
“We all see what’s been going on with HRC, and the fact that HRC prices are still falling is pressure on all downstream markets,” a source said.
Another source agreed. “The tube mills are starting to get antsy, and the [sales] reps that I’ve talked to have said that their order books are pretty flat,” he said. “Any floor stock or rollings that aren’t too far out are being offered at closer to $109 cwt. ($2,403/mt or $2,180/nt), FOB mill. Some of the mills are saying there are tons to be had, so let’s have a talk about it.”
Other sources have said that while their current inventory levels are dwindling, they’re extremely reluctant to book tons before the first of the year.
“Right now, we’re not buying anything, because none of us want to buy today if we think that prices will be lower in three weeks” another source said. “I think there could be a lot of bleeding come January and I’d be surprised if the mills don’t come out with an official price reduction before the end of the year.”