Distributors are not stocking up on the welded items until they feel confident that hot-rolled coil prices are stabilizing, according to market participants. Downstream demand also has been disappointing in some industries, including automotive, machinery and some regional manufacturing and construction markets.
"End-user activity is softer than expected," a welded tube mill source said. "[There's] lots of inventory in the chain causing a little bit of a backup."
Fastmarkets AMM's monthly pricing assessment for US domestic A513 mechanical tubing dropped to $930-970 per short ton ($46.50-48.50 per hundredweight) fob mill on Tuesday June 11, down by 3.6% from the previous range of $970-1,000 per ton ($48.50-50 per cwt) on May 14.
Fastmarkets AMM's daily hot-rolled coil index has descended below $28 per cwt ($560 per ton) for the first...