About two weeks ago, US domestic hollow structural sections (HSS) mills rescinded $1.50 cwt. ($33/mt or $30/nt) of their $3.00 cwt. ($66/mt or $60/nt) early January price increase--$1.00 cwt. ($22/mt or $20/nt) of the increase was previously rescinded in mid-February. But since early March, tubing mills have backpedaled on the remaining $0.50 cwt. ($11/mt or $10/nt) as well, and spot prices have fallen $0.50 cwt. to $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-Midwest mill, with rumored deals already below the range. According to SteelOrbis sources, discounting has been rampant on some larger fabrication projects, and unless flat rolled prices stabilize or firm soon, further declines in HSS prices are likely. A few flat rolled mills have announced price increases over the last couple days but with supply levels still profuse, the effectiveness of the increases have yet to be determined.
Due to rapid drops in US flats prices over the past 45 days, HSS buyers have been trying to keep inventories lean as downward pressure on resale prices has been growing. Nonetheless, demand has actually improved and distributors report more inquiries compared to just a few weeks back. However, a boost in domestic demand levels hasn't been enough to convince many US buyers to begin looking offshore again, and orders booked for Turkish HSS have been moderate at $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports--up about $1.00 cwt. from previously reported levels two weeks ago.