April 2011 | Welded steel tube & pipe
Structural tubing prices begin to soften: Americas Market Analysis
With the decline in HR coil prices, as well as still-limited demand conditions, HSS pricing is poised to follow the slide.
Through April, MBR has witnessed a weakening in HSS prices, as limited demand growth and declining costs weigh on prices. Prices are standing at around $1,300/tonne for domestic shipments, but volume discounts are plentiful. Output growth has been measured and moved with demand in order to prevent a stock build. But, softening prices for substrate are leaving room for further pipe discounts. The HR coil market is facing additional and restarted capacity entering the market, just as the seasonal slowdown is about to commence. Moreover, obsolete scrap prices are declining as well which will undermine finished steel prices. April scrap prices saw the cut grades decline $5-10/l.ton, and the outlook for May is for further declines as the export scrap market is weak.
HSS prices will continue to decline
With the decline in HR coil prices, as well as still-limited demand conditions, HSS pricing is poised...
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