Uncertainty regarding announced flats increases has kept hollow structural sections (HSS) activity quiet and spot prices have fallen again. This week, a number of US flats mills announced price increases on flat rolled spot prices in attempt to stem the multi-month declines. With a short week this week due to the Independence Day holiday, the effect of the increases is not yet certain, but many are hopeful it could at least stabilize the flats market. If the increases do positively impact the flats market, tubing mills will rapidly follow suit, sources tell SteelOrbis, but for the time being, HSS spots are still softening. Since last week, mills have reduced prices by another $0.50 cwt. ($11/mt or $10/nt) to $46.50 cwt. ($1,025/mt or $930/nt) ex-mill, but spot prices are lower at $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) ex-Midwest mill, while larger projects are garnering further discounts of up to $0.50 cwt.
Even though there is a possibility that HSS mills could announce an increase this month, tubing buyers aren't rushing to make any hedge buys ahead of time as the success of the flats increase remains under fierce skepticism considering another expected drop in domestic scrap prices this month. Therefore, import HSS offers from Turkey at $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck in US Gulf ports, unchanged in the last two weeks, are essentially being ignored by US buyers. Until domestic HSS prices show signs of a turnaround, imports won't be worth the risk for most US buyers or traders purchasing position tons.