Are US HDG mills about to announce a price increase?

Spot market prices for US domestic hot dipped galvanized (HDG) and Galvalume coil may have trended mostly steady since our last report a week ago but sources close to SteelOrbis have reported some “additional wiggle room” on price.  “The average range really hasn’t moved but there are some quiet deals that are taking place just below this level,” one source said, adding that the current average transaction range has continued to hold at $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt), ex-Midwest mill, which reflects no change in the past week.

The past week’s "somewhat soft" price trend has mimicked what’s been seen since late July, when US domestic HDG began to embark on a slow, downward drift.  Part of the softening is believed to be due to a downshift in overall order activity, which is typical of the summer months. 

August 9 data from the US Department of Commerce, Enforcement and Compliance indicates that for the month of July, the US imported 222,163 mt (license data) of hot dipped galvanized sheets and strip from global sources, which is 95,262 mt less than what was imported to the US in July 2015.

As to whether the current, slow downward drift in spot market prices will continue, some believe it’s only a matter of time before mills push out a price increase.  “If nothing else it will be to prevent prices from slipping further.  I’d be surprised if mills didn’t announce something after Labor Day,” another source said.