Last week, SteelOrbis reported that the average spot market price transaction range for US domestic hollow structural sections (HSS) tubing was trending at approximately $40 ($882 or $800/nt), ex-mill.
This week, sources say that some transactions below that price point have begun to emerge. “There have absolutely been cracks in pricing,” a source said. “We’ve taken our inventory down a lot, and for the most part, we’re not buying anything from the mills unless we have commitments for it.”
Although it was previously suspected that tube mills were on the verge of pushing out a price increase, that increase has yet to emerge. Some believe that the delay is tied to sluggish acceptance of the flat rolled steel price increase.
It’s further believed that when tube mills do announce, that service centers are likely to start re-stocking, in an effort to lock in deals before prices resume an upswing.