Last week, market players within the US domestic hollow structural sections tubing market believed it was “only a matter of time” before mills would announce a price increase.
The widespread speculation, SteelOrbis sources said, was that mills would push for an uptick of $2.00 cwt. ($44/mt or $40/nt).
This week, US tube mills followed through on that expectation, although the price increase was instead announced at $1.50 cwt. ($33/mt or $30/nt). Current pricing, which was reported at $50.50 cwt. ($1113/mt or $1010/nt) ex-mill in last week’s report remains unchanged, although an upward revision is soon expected.
Buyers say they believe the increase will stick, due to continued upticks in US HRC pricing. Flats mills announced their second price increase of the year in late January and it’s believed that US HRC prices, which are currently trending at $34-$36 cwt. ($750-$794/mt or $680-$720/nt), ex-mill, could climb as high as $40.00 cwt. ($882/mt or $800/nt), ex-mill, before the uptrend stalls out.
Should US HRC prices continue to climb, US HSS prices will continue to climb, as well.