Sources close to SteelOrbis have confirmed that while “official” spot market prices between US domestic HSS tubing continue to hold at roughly $73.50 cwt. ($1,620/mt or $1,470/nt), FOB mill, “deals are still available and additional downward adjustments are expected.”
Similar to last week, deals up to $5.00 cwt ($110/mt or $100/nt) below that price point are still being heard throughout the marketplace.
“The spread between hot rolled and tubing is still too wide,” a source said, adding that while he thinks it’s unlikely that HRC and HSS tubing will return to their historical, pre-Covid $15 cwt. ($331/mt or $300/nt) spread, he believes a $25 cwt. ($551/mt or $500/nt) spread is more likely, due to increased energy and transportation costs, along with other related cost-influencing factors.
If that does turn out to be the case (and considering that as of late-last week, the high-end of the US HRC price range was trending at $37.50 cwt. ($826/mt or $760/nt), FOB mill), this means that US HSS prices could continue to adjust until they reach $62.50 cwt. ($1,378/mt or $1,250/nt), FOB mill.
A second source agreed.
“I think we’re going to see a lot of price volatility for both flat rolled and tubing throughout the rest of the year,” he said. “And while demand for tubing is good, a lot of the fabricators haven’t been in any rush to stock up because they think prices will come down.”
Additional price adjustments are expected to come before the end of the month.