The most commonly reported spot price transaction range for US domestic HSS tubing has widened on the bottom end since our last report a week ago, from $46.00 cwt. ($1,014/mt or $920/nt), to $45-$46 cwt. ($992-$1,014/mt or $900-$920/nt), ex-mill.
“Demand is pretty good and for the most part of the week, I’ve been buried in orders,” a source said, noting that while the “orders are there,” that the market “continues to face a lot of downward pressure.
“The last flats increase went nowhere, and with what happened with scrap this month, I think that’s not going to help things,” he continued.
Yesterday, SteelOrbis reported that US scrap prices settled downward across the board during this month’s buy cycle. Scrap prices in the Midwest trended downward between $10-$30/gt ($10-$31/mt) depending on the grade, whereas the downtrend on the East coast was clocked at down $20-$30/gt ($20-$30/mt).
“I don’t think that prices are going to fall off the cliff, but I don’t know if they’ll be able to hold steady based on what’s happening elsewhere in the market.”