Despite still-soft US domestic hollow structural section (HSS) prices and buyers holding back orders due to market uncertainty, there have been some initial rumblings of a possible price increase for approximately $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt) in response to recent increases from US flats mills. However, sources tell SteelOrbis that tubing mills will only raise prices if flat rolled spots increase first--flat rolled prices have stabilized since the increase announcements two weeks ago, but have not yet showed any upward momentum. Additionally, while domestic HSS spot prices are mostly steady from two weeks ago in the $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) ex-Midwest mill range, large orders can garner a discount of up to $1.00 cwt. due to heavy mill availability.
According to industry insiders, tubing mills still have openings for April rollings and many have a decent amount of floor stock as well. Even though demand has actually been increasing over the past month, particularly from fabricators, rapid availability has few buyers building inventories beyond what can be quickly sold. Improved demand also has not given most US buyers enough confidence to seriously consider imports. Although Turkish HSS offer prices in the range of at $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports--unchanged in the last two weeks--are substantially below US spot prices, arrival dates are now in July, during the notorious summer doldrums.