It’s been less than 24 hours since US domestic HSS mills announced they’d be raising prices by $2.50 cwt. ($55/mt or $50/nt) effective with all new orders. And while mills appear to have drawn their line in the sand, many question whether the new price points will have sticking power.
“People bought heavy when they were confident the market had bottomed and there’s a lot of shipments that are on the way,” a source said. “I’m hard pressed to think there’s going to be a lot of stock replenishment at this level.”
Others point to “market anxiety” with regard to flat rolled steel prices. Although some flats mills are expressing confidence that the market is strong, and that prices will continue to increase through the end of the year, others think the prediction is inflated and expect flats pricing will soon reverse course.
“We think the tube mills are going to try to get prices up as much as they can and keep them there as long as they can,” another source noted. “How long they’ll be able to keep prices high is the question.”
In terms of today’s pricing, the mill price increases have not yet absorbed into the market. As with last week, US domestic HSS tubing prices are still being heard at approximately $41.50 cwt. ($914/mt or $830/nt), FOB mill, and $43.50 cwt. ($959/mt or $870/nt), delivered to customers in the Southeast. However, some SteelOrbis sources have said that mills are making a strong push at $2.50 cwt. ($55/mt or $50/nt) higher.