The most commonly reported spot price transaction range for base-price US domestic hot dipped galvanized (HDG) coil has firmed by approximately $1.00 cwt. in the past week, which brings the current average spot price transaction range to approximately $39-$40 cwt. ($860-$882/mt or $780-$800/nt,) ex-Midwest mill.
The current week’s increase comes on the heels of an approximate $3.50 cwt. ($77/mt or $70/nt) uptick in pricing that was heard one week prior.
Some question whether prices have firmed “too much, too fast,” especially since US domestic HDG spot market prices have risen by $15.50-$16.00 cwt. ($342-$353/mt or $310-$340/nt) since the last week of December 2015, when SteelOrbis reported that US domestic base price HDG coil was trending in the approximate range of $23.50-$24.00 cwt. ($518-$540/mt or $470-$490/nt,) ex-Midwest mill.
The big question is whether the months-long price firming trend will continue.
“These increases definitely aren’t demand based, it’s all supply based, especially since import competition is pretty much a non-factor,” one source said.
It should also be noted that the current expectation for June scrap prices places that market at “sideways to soft sideways,” scrap yard sources said. Other SteelOrbis sources believe that in the absence of additional upticks in the domestic scrap market, that US HDG prices “could hold steady.”
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $39-$40 | $860-$882 | $780-$800 | up $1.00 cwt. |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $47.50-$49.50 | $1047-$1091 | $950-$990 | up $1.00 cwt. |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $46.50-$48.50 | $1025-$1069 | $930-$970 | up $1.00 cwt. |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $38.50-$40.50 | $849-$893 | $770-$810 | up $1.00 cwt. |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $47.50-$49.50 | $1047-$1091 | $950-$990 | up $1.00 cwt. |