Last week, SteelOrbis reported that the average spot market price transaction range for US domestic hollow structural sections (HSS) tubing was trending in the range of $40-$42 ($882-$926/mt or $800-$840/nt), ex-mill. This week, sources say the bulk of transactions are taking place toward the lower end of that range.
“First, there are still a lot of businesses that are closed because they’re concerned they can’t maintain social distancing in the workplace,” a source said. “Second, business as a whole is off. Some of our contract business is still good, others are not so good. Our spot business is down by at 30%, easy.”
It’s further speculated that tube mills are likely to announce a price increase “sooner than later.”
The belief for this is tied to two things. First, scrap prices have settled upward during this month’s buy cycle. Second, flats mills announced a sweeping round of price increases late Friday afternoon.
Another source agreed that a price increase was likely imminent.
“It’s only a matter of time before the tube mills jump on that train.”