US hot rolled coil prices have continued to exhibit softness in recent weeks, and that softness has spilled over to the domestic hollow structural sections (HSS) tubing market. Today’s prices are $2.00 cwt. ($44/mt or $40/nt) below levels seen two weeks ago, which places the HSS spot market price transaction range at $45-$46 cwt. ($992-$1,014/mt or $900-$920/nt), ex-mill. Lead times, sources note, are hovering at 2-3 weeks.
Current US HRC prices have dipped below $30 cwt. ($661/mt or $600/nt), ex-mill, and some volume buyers have said they’re having no issues getting deals up to $3.00 cwt. ($66/mt or $60/nt) below that price point.
Another source said he believes that the US HRC market hasn’t bottomed out just yet, adding that if HRC hits $26 cwt. ($573/mt or $520/nt), that US HSS prices could fall to $41 cwt. ($904/mt or $820/nt), ex-mill.
Sources say they’re in the process of thinning out their inventories as much as possible, and plan to re-stock heavy once the market bottoms out.
“The bottom won’t last long because there will be a rush of order placement,” a source said. “That’ll push lead times out and get prices up, which will swing the pendulum of price momentum in an upward direction.”