Market participants who previously had identified strength in the market to underpin a pair of summertime price increases now say the confidence has waned.
Mills are already discussing discounts for large-tonnage commitments, an East Coast distributor said.
"Demand remains decent but unfortunately mills aren't busy - way too much capacity in relation to the current domestic demand," the East Coast distributor said. "I would expect price erosion."
Fastmarkets' weekly assessment for steel hollow sections ASTM A500 Grade B domestic, fob mill US, was at $880-920 per short ton ($44-46 per hundredweight) on Thursday August 29, unchanged since August 1. The price had increased by $40 per ton in July, rebounding from the more than two-and-a-half-year low of $840-880...