SteelOrbis has learned that the average spot market prices for US domestic hollow structural sections (HSS) tubing has softened since our last report a week ago. Last week, sources had indicated that prices were trending at approximately $71 cwt. ($1,565/mt or $1,420/nt), FOB mill, adding that deals up to $2.50 cwt. ($55/mt or $50/nt) below this price had been heard based on volume.
As of today, prices have revised downward to $67.50 cwt. ($1,488/mt or $1,350/nt), FOB mill, although sources have said they’ve heard that one particular mill is doing some really aggressive deals at $66.00 cwt. ($1,455/mt or $1,320/nt), FOB mill.
“I think the writing is on the wall,” a source said, adding that demand has been lackluster at best. “Even with prices coming down, when you look at the spread between tubing and hot rolled, the mills are still making plenty of money.”
