Sources close to SteelOrbis have confirmed that activity and pricing within the US domestic hollow structural section (HSS) tubing market are identical to conditions reported last week. As such, most transactions are being heard at $40 cwt. ($882/mt or $800/nt), delivered to customers in the Southeast.
Demand is still terrible at best, sources note, adding that the overall state of the market is depressed. What is interesting, however, is that US domestic flats mills announced a $2 cwt. ($44/mt or $40/nt) price increase on all flat rolled steel products, including HRC. Although it’s largely speculated that the announcement was rolled out “to stop the bleeding” since flat steel demand hasn’t been great, lead times are short and supply seems to be outpacing demand, and it’s suspected that “if the HRC increase begins to show even the smallest signs of acceptance, the tube mills will likely roll out an increase as well.”