With widespread belief that domestic scrap prices will firm during this month’s buy cycle, US domestic steelmakers wasted no time raising prices. On Wednesday of last week, Atlas Tube led the charge when they sent out a letter to customers noting they’d be raising prices by $2.50 cwt. ($55/mt or $50/nt), effective with all new orders.
By the end of the week, not only did the other tube mills announce in solidarity, flats mills announced as well. As expected, US HRC prices have jumped up, and, also as expected, HSS tubing prices have followed.
Prior to the announcements, US HSS prices were heard at approximately $36.50 cwt. ($805/mt or $730/nt), FOB mill. Today, sources have said prices are closer to $39.00 cwt. ($860/mt or $780/nt), FOB mill, and sources in the Southeast have said that with freight costs, prices are closer to $41 cwt. ($904/mt or $820/nt) delivered to the customer.
Similar to happenings within the flat rolled steel market, last week’s increase has led to a flurry of order placement, as buyers indicated they’d taken their inventories to “razor thin levels and wanted to stock up at prices at or close to the pricing floor.” In addition to helping push out lead times, the activity has helped support higher prices.