SteelOrbis

US HSS spot market prices continue to climb

Wednesday, 18 January 2017 22:34:33 (GMT+3)   -   San Diego

US domestic hollow structural sections (HSS) tubing prices have continued to firm since our last report two weeks ago, when SteelOrbis reported that early-January spot market prices were trending at $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt), ex-Midwest mill.

This trend is tied to HSS mills’ latest price increase announcement; on January 11, HSS mills told customers they would be raising prices by $2.00 cwt. ($44/mt or $40/nt), effective with all new orders. At that time, customers indicated that if the increase was absorbed, it would put US HSS spot market prices at or above $47.00 cwt. ($1,036/mt or $940/nt), ex-Midwest mill.

Multiple sources close to SteelOrbis have indicated that HSS mills, especially those in the South, have held firm on the increases.  Prices have firmed by $1.50 cwt. ($33/mt or $30/nt) on the bottom end, and by $2.50 cwt. ($55/mt or $50/nt) on the top end since our last report two weeks ago, which brings the current average transaction range to $46-$48 cwt. ($1,014-$1,058/mt or $920-$960/nt), ex-mill.

“Prices are holding firm and we are very busy,” one source said. “We are having a hard time keeping up with our orders. There is a lot of optimism with Trump coming into office.”

Another source agreed.

“Prices are holding firm and there doesn’t seem to be any concern that prices will correct in the first quarter,” the source said. “We’ve had some good bookings and we’re booking a lot of big jobs.”

Although it’s not currently believed that US HSS mills will announce another price increase, should flat rolled mills announce further increases on US domestic hot rolled coil, “you can guarantee the tube mills will follow,” a third source said.


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