Pricing for US domestic hollow structural sections tubing has remained stable since our last report a week ago, but many within the marketplace are wondering how long current prices, which are at their highest level in more than nine years, will continue to trend steady.
Current prices continue to range between $58-$60 cwt. ($1,279-$1,323/mt or $1160-$1200/nt), ex-mill, although sources close to SteelOrbis have indicated that deals toward the bottom end of that range are reserved for volume buyers.
Demand is mostly steady, sources say, adding that fabricators who have large jobs booked toward the end of 2018 are still reluctant to buy in advance due to concerns that prices could soon head for a downturn, due to a forecast decline in US HRC prices that is expected to emerge as lower-priced import HRC starts to arrive at US ports in September.
Some believe that US HRC prices could correct by as much as $2.50 cwt. ($55/mt or $50/nt) before the end of the year, although others point out that making any sort of prediction under the current administration is difficult, due to Trump’s ever-fluid decisions on trade policy.