Yesterday, SteelOrbis reported that US domestic HSS mills were continuing to push for spot market transactions at $48.50 cwt. ($1,069/mt or $970/nt) ex-mill, due to higher input costs.
Today, sources are reporting that demand and order activity is not supportive of that price point, adding that mills have shown increased willingness to sell at $47.50 cwt. ($1,047/mt or $950/nt) ex-mill. Others sources agree, adding that since mills have been unable to get US HRC prices up to a desired price point of $32.00 cwt. ($705/mt or $640/nt) ex-mill, that higher prices for HSS tubing are unlikely to last for long.
“The hot rolled guys, at best, are getting $30.50 cwt. ($672/mt or $610/nt) ex-mill but the bulk of transactions are still happening at $30.00 cwt. ($661/mt or $600/nt) ex-mill or below,” a source said. “We see HRC sliding, and we think the tube mills are going to correct downward by another $1.00 cwt. ($22/mt or $20/nt) within the next few days.”