SteelOrbis sources have confirmed that the “book price” for US domestic hollow structural section (HSS) tubing is still being heard at approximately $38.50 cwt. ($849/mt or $770/nt), ex-mill, although deals “are readily available based on tonnage.”
“We booked some decent tons this week, and while I can’t tell you what we paid, I can tell you that we paid well below book price,” a source said. “The mills are fighting for orders.”
Sources also say they believe that the tube mills have a strong desire to raise prices, but in the absence of significant changes within market fundamentals, a price increase is “unlikely to stick.” It’s also believed that if scrap trends up in September, as expected, that US flats mills will push out an increase “much sooner than later.”
“It’s my guess that the tube mills may already have their increase announcement written up, and they’re just waiting for that flat rolled increase to go out,” the source added. “Because right now, the only thing that’s going to sell buyers on an increase, as an increase in mills’ input costs.”