Last week, SteelOrbis predicted that US domestic tube mills were likely to announce another official downward price revision. At that point, spot market prices were trending at approximately $78.50 cwt. ($1,731/mt or $1,570/nt), FOB mill, although deals up to $10 cwt. ($220/mt or $200/nt) below that price were said to be readily available within the marketplace.
This week, sources have confirmed that both Atlas Tube and Nucor lowered their book prices by $5.00 cwt. ($110/mt or $100/nt), which brings the new “official” price to $73.50 cwt. ($1,620/mt or $1,470/nt), FOB mill.
Sources have also confirmed that deals up to $5.00 cwt. ($110/mt or $100/nt) below that range still available within the market place, adding that “despite the revision, things are essentially exactly where they were a week ago.”
It’s also believed that the spread between HRC and HSS tubing is still too wide, and as such, additional downward revisions for HSS tubing are likely to be seen in the not-too-distant future.