Last week, US hollow structural sections (HSS) mills rescinded their late July $2.00 cwt. ($44/mt or $40/nt) increase, but that hasn't stopped customers for pushing for even lower prices. Tubing mills' official asking prices had been $48.00 cwt. ($1,058/mt or $960/nt) ex-Midwest mill following the increase, but most customers never had to pay the full increase anyhow. Throughout August and most of September, actual spot transactions were hovering at $0.50-$1.50 cwt. ($11-$33/mt or $10-$30/nt) below official levels, depending on tonnage size. Now, however, mills are asking for $46.00 cwt. ($1,014/mt or $920/nt) ex-Midwest mill. Even though the new price is more on par with where most market activity had already been taking place, larger buyers are still able to get even more of a discount, bringing the general spot range to $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill, down $1.50 cwt. since mid-September.
HSS prices are expected to soften even further during the first couple weeks in October. US flat rolled prices are deteriorating rapidly, slipping about $1.50 cwt. in the last two weeks with no end in sight yet. Further, domestic scrap prices are now expected to dive again in October (predictions peg the drop at anywhere between $20-$40/lt, depending on region and grade) and take finished steel prices down with them. So, while there are import offers available to anyone interested, most US buyers are shying away from anything with long lead times, given that US HSS mill lead times are around mid-October. Nonetheless, with tubing prices around $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) DDP loaded truck in US Gulf ports from Turkey, import activity isn't entirely silent either and a few sporadic orders are being booked.