US HSS prices pressured by lackluster order placement, soft HRC

Wednesday, 29 May 2019 23:51:19 (GMT+3)   |   San Diego
       

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.”

 


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