Spot prices for
US domestic hollow structural sections (HSS)
tubing have endured additional softening since our last report; prices have come down by an additional. $1.50 cwt. ($33/mt or $30/nt) on the bottom end, and $0.50 cwt. ($11/mt or $10/nt) on the top end, which brings the current average spot market transaction range to $46.50-$48.50 cwt. ($1025-$1069/mt or $930-$970/nt), ex-mill.
Sources close to SteelOrbis believe that spot market prices could adjust by an additional $0.50 cwt. ($11/mt or $10/nt) “before the market bottoms out.”
“Prices have officially come down $2.50 cwt. ($55/mt or $50/nt) since they peaked in late April,” a source said. “We expect to see things continue to adjust slightly, or at least we’re hoping the market won’t come down too much more.”
Another source agreed. “Demand is OK but not robust. Service center sentiment is negative with the fear that prices could drop even more than what we’re expecting. There’s a lot of inventory dumping going on with service centers trying to position themselves to be able to buy when prices reach bottom.”