US tube, pipe prices sag; buyers await HRC stability

Prices for domestically produced mechanical tubing and standard pipe in the United States declined after buying slowed in response to persistent weakness in substrate costs.

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...

Published

Dom Yanchunas

June 12, 2019

22:13 GMT

New York