Fastmarkets' weekly price assessment for steel hollow sections ASTM A500 Grade B domestic, fob mill US, narrowed downward by $20 to $860-880 per short ton ($43-44 per hundredweight) on Thursday September 12 from $860-900 per ton on September 5.
Service centers in every region have been reluctant to procure large volumes of hollow structural sections (HSS), market participants said. This was attributed to a decline in the price of hot-rolled coil substrate.
Fastmarkets' daily steel HRC index, fob mill US, was calculated at $27.94 per cwt ($558.80 per ton) on Thursday, its first time moving below $28 per cwt since mid-July and down by 7.8% over the past month.
The anticipated implementation of tubing price increases at the end of August had stimulated some buying ahead of mills' scheduled price-protection expirations.
With that material on the way, service centers can afford to be patient while they watch the substrate price go lower. This has forced mills to show some flexibility if they want to...