Steel Products Prices North America
U.S., Canadian Tube Mills Roll Out Triple-Digit HSS Prices Hikes
Written by Michael Cowden
March 10, 2021
At least two U.S. tube mills plan to increase prices for non-energy tubulars by $125 per ton ($62.50/cwt) effective immediately, according to letters to customers.
North of the border, meanwhile, Welded Tube of Canada aims to increase prices on hollow structural sections (HSS) and mechanical tubing by $160 per ton CAD, also effective immediately.
Atlas Tube appears to have led the latest round of tube price hikes. The Chicago-based division of Zekelman Industries said in a letter to customers on Wednesday, March 10, that it aims to increase prices on all new orders of mechanical tubing, HSS and piling products by at least $125 per ton.
“All orders currently on our books will be price protected for shipment through April 9, 2021. This increase will apply to all unconfirmed quotes and contracts,” the company said.
The latest price hike means Atlas–following a $50-per-ton price hike on Feb. 22–has increased prices by $175 per ton in just over two weeks.
EXLTUBE said it too would increase prices for all A500 and A513 products by at least $125 per ton.
“This increase will apply to all unconfirmed quotes and contracts,” the company said in a letter to customers also dated March 10.
EXLTUBE said orders on the books would be protected from the price hike through April 9. Like Atlas, EXLTUBE last increased prices by $50 per ton in February.
Welded Tube of Canada’s $160 per ton CAD increase is roughly on par with the price hikes announced by domestic mills once currency conversions are taken into account.
The Concord, Ontario-based pipe and tube maker said it would protect existing orders from higher prices through April 2. “All outstanding quotations and orders that have not been confirmed will be subject to requote,” the company said in a March 10 letter to customers.
Other pipe and tube mills in the U.S. and Canada are likely to follow the moves by Atlas, EXLTUBE and Welded Tube of Canada, market participants said.
The tubing price hikes follow gains in hot-rolled coil, which has been testing new record highs for most of 2021.
Steel Market Update’s benchmark hot-rolled coil price stands at $1,270 per ton, up $90 per ton from $1,180 per ton a month ago and up $260 per ton from $1,010 per ton in early January.
Coil is the substrate needed to make welded tubulars such as HSS.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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