US HSS price slide screeches to a halt

Tuesday, 08 March 2022 23:24:50 (GMT+3)   |   San Diego

Last week, US domestic tubing prices slipped once again after Atlas Tube informed customers they’d be taking down their prices by $6.00 cwt. ($132/mt or $120/nt). This brought HSS spot market prices to an average range of $82-$83 cwt. ($1,808-$1,830/mt or $1,640-$1,660/nt) FOB mill, compared to $88-$89 cwt. ($1,940-$1,962/mt or $1,760-$1,780/nt) FOB one week prior.

But today, after it was learned that US domestic scrap prices are “practically guaranteed” to settle up by $125/gt on cuts and shredded scrap, and by +$150/gt on prime grade scrap, domestic tube mills were quick to react.

Within the past hour, both Atlas Tube and Nucor Tubular Products have announced they’ll be raising prices by $7.50 cwt. ($165/mt or $150/nt), effective immediately for all new orders.

Sources close to SteelOrbis have said that recent happenings within the market, including higher scrap prices and an anticipated +$10 cwt. ($220/mt or $200/nt) jump in HRC prices (which many believe will happen in the upcoming weeks), “means that today’s HSS price increase is very likely to stick.”

Prior to today’s announcement, sources close to SteelOrbis said that additional price decreases on HSS tubing were “completely off the table.”

“As you know, there will not be another decrease,” a source said on Monday. “The mills are saying they think that HRC prices will increase to $60 cwt. ($1,323/mt or $1,200/nt), FOB mill, in short order. There has been a rush on the tube mills with restocking, and last weekend, Nucor actually shut down its portal to prevent [additional] online bookings so they could evaluate the situation.”

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