US domestic hollow structural steel (HSS) tubing producers aren’t as busy as they’d like to be, sources note, adding that mills have become increasingly willing to cut deals to gain orders.
As such, the average ex-mill spot market price transaction range has declined in the last week from $51.00-$53.00 cwt. ($1,124-$1,168/mt or $1,020-$1,060/nt) ex-mill, to $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-mill.
“Lead times are short and a lot of buyers are waiting for the 11th hour to put their orders in,” a source said. “Service centers have a little less than two months of inventory on the ground and for now, there’s no pressing need for inventory.”
It’s further speculated that US domestic HSS prices, which have historically trended approximately $10.00 cwt. ($220/mt or $200/nt) above US HRC prices, may soften a bit more before they reach bottom, since the current gap is above the historic margin.
As with last week, market players say they’re still keeping close tabs on US HRC prices, as some within that market believe that US HRC prices may continue to correct into the summer due to short lead times and increased capacity.