Pricing for US domestic hollow structural section tubing continues to be robust, sources note, adding that current prices are at their highest point in the past seven years. It’s further speculated that current price points will hold through at least June 1, when the Trump administration announces their final decision with regard to Section 232 tariffs and quotas.
The uncertainty over the administration’s stance on trade policy, combined with strong HRC costs and high freight costs have helped keep US HSS pricing stable, sources say.
Current prices are continuing to hold at $56-$57 cwt. ($1235-$1257/mt or $1120-$1140/nt), ex-mill, although some buyers report being able to obtain deals up to $0.50 cwt. ($11/mt or $10/nt) below the above stated range. Deals, sources say, are only available to buyers who are wanting to book significant tonnage.
Service centers who bought heavily before the Section 232-related price spike say they’re in a very comfortable position when it comes to profit margins, although some have admitted that anything they make in profit is seemingly moot, since replacement costs are much higher today than they were in the early weeks of the year.