US domestic hollow structural section (HSS) mills announced a price increase Thursday, but spot prices have still faltered over the last two weeks. Mills have been making downward adjustments on transaction prices on a daily basis as needed, according to SteelOrbis sources, with bigger construction and fabrication projects drawing especially bigger discounts. Since early July, HSS spots have fallen another $0.50 cwt. ($11/mt or $10/nt) and can now be found between $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill. But the months-long decline in prices may soon be over, at least temporarily, as Atlas Tube announced late Thursday a $2.00 cwt. ($44/mt or $40/nt) price increase, following a $2.00 cwt. increase in the flat rolled market a few weeks ago. Other tubing mills are anticipated to swiftly follow Atlas Tube's lead.
As a result of the announced increase for all new orders and HSS prices getting so low over the last few months, many buyers are beginning to make hedge buys domestically. But while there is some moderate growing optimism in the US tubing market, it is not nearly strong enough for many to take the long lead time risk of an offshore order. Turkish offer prices to the US are still between at $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck in US Gulf ports, as they were early this month, but trader sources tell SteelOrbis that if US HSS prices go up, Turkish mills may also raise their offer prices following the Ramadan holiday.