The lack of a clear price direction in the US domestic hollow structural sections (HSS) market is leading spot prices to vary from order to order and mill to mill. There is a substantial amount of apprehension in the tubing market as to how long recent increases mills have been able to attain can hold following two price announcements. However, sources tell SteelOrbis that mill bookings have been minimal and demand at the service center level is also tepid. Meanwhile, the driving force behind higher HSS prices--increased flat rolled spots--is also hindering HSS mills' ability to keep pushing prices higher now that the flat rolled market has remained stagnant over the past three weeks.
Tubing mills are generally quoting $48.50 cwt. ($1,069/mt or $970/nt) ex-Midwest mill on new orders, according to service center sources, but the bulk of activity is taking place closer to $47.00 cwt. ($1,036/mt or $940/nt) ex-Midwest mill, up about $1.00 cwt. ($22/mt or $20/nt) in the last couple weeks. Nonetheless, for the right order, some mills have been heard still taking orders at around $46.00 cwt. ($1,014/mt or $920/nt) ex-mill. Expectedly, with the domestic HSS market's immediate future cloudy at the moment, the little import activity that had been taking place has now slowed. While Mexican mills have also been looking to raise their sales prices to the US, customers aren't willing to pay higher prices at the moment, and offers still remain about $3.00-$5.00 cwt. ($66-$110/mt or $60-$100/nt) below US domestic spot prices.