Buyers now sense that the steepest declines in steel prices have played out, and October purchase orders have cleared some of the tube mills' floor stock, according to market participants. With the US economy still growing and nonresidential construction contractors busy, service centers are making inventory buys again.
"There is stabilization," an East Coast distributor said. "You are close to the bottom now. People can feel safe doing some buying and you're not going to get hurt in your value of inventory."
A mill source confirmed the rejuvenated activity in hollow structural sections (HSS). "Really busy. Highest booking month of the year," he said.
Fastmarkets' weekly price...