US domestic hollow structural tubing prices endured a slow, downward drift in pricing during the last weeks of 2018, but now that market players have returned to work, many are questioning where pricing will settle.
As of late December, pricing had slipped to $53-$55 cwt. ($1,168-$1,213/mt or $1,060-$1,100/nt), ex-mill, but sources had been reporting that mills, due to a hunger for orders, had been negotiating some quiet deals below that range.
The overall direction of US HSS tubing prices will be largely dependent on the US HRC market, as spot market pricing for US hot rolled coil had endured a substantial downward revision in the last weeks of the year. Some sources close to SteelOrbis say they believe the market “overcorrected,” and as such, HRC prices may settle slightly upward now that the new year has begun. It's believed that higher HRC prices could help push US HSS prices up, as well.
“There is a lot of ‘wait and see’ going on at the moment, which has tube buyers being a bit cautious,” a source said. “A lot of people are holding off on making any substantial purchases until they’re sure the market has bottomed out.”
Current HSS spot market pricing is still trending in the mid-late December range, sources note, which is largely tied to many within the US having taken the last 10 days off from work due to the Christmas and New Year holidays. Market activity is expected to return to normal, now that the year-end vacation season has concluded.
As such, pricing clarity is expected to emerge in the next few weeks.