Falling US scrap and HRC prices, combined with cautious buying patterns by service centers have led to price softening within the US domestic hollow structural sections (HSS) market.
“Prices are down between $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) in the past three weeks, but I think prices have finally settled,” a source said, adding that service centers’ “as-needed-only” buying patterns have led to an increased willingness by mills to negotiate deals.
As such, SteelOrbis has adjusted last week’s spot market price transaction range down by $1.00 cwt. ($22/mt or $20/nt), to $47.50-$49.00 cwt. ($1047-$1080/mt or $950-$980/nt), ex-mill, adding that deals up to $1.00 cwt. below this range are available to buyers who are interested in booking significant tonnage.
“We’re also getting into Q4, when everyone is trying to get rid of inventory, so I expect the last three months of the year to be very slow. I see this year’s Q4 resembling last year—which was average-to-weak at best,” the source added.