Lagging availability of imports and still steady demand continue to keep US domestic hot dipped galvanized (HDG) spot market prices firm.
Although the most commonly reported spot price transaction range has held mostly steady since our last report a week ago, at approximately $41-$42 cwt. ($904-$926/mt or $820-$840/nt) ex-Midwest mill, sources close to SteelOrbis have confirmed that the number of transactions that are taking place closer to the lower end of that range are becoming fewer and farther between.
HDG coil continues to be the strongest segment within the US flat rolled steel market, one Texas-based distribution center source notes, adding that while demand is steady, many service centers are reluctant to take on any inventory positions due to fear that ex-mill pricing will collapse.
“All signs point to prices staying strong through the end of the year, but we can’t seem to get the taste of last year out of our mouths,” he said. “Last year’s poor market conditions are still fresh on everyone’s minds. A little stability would be great.”
Although some believe that US domestic mills will use the recent final determination announcement in the US import HDG trade case “as an excuse to push out another price increase, since imports are pretty much a non-factor at this point,” others note that current US domestic scrap market prices are trending softer than anticipated, which “might make another price increase announcement a hard sell.”
June scrap prices in the US are not expected to fully settle until later this week.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $41-$42 | $904-$926 | $820-$840 | neutral |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $49.50-$50.50 | $1091-$1113 | $990-$1010 | neutral |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $48.50-$49.50 | $1069-$1091 | $970-$990 | neutral |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $40.50-$41.50 | $893-$915 | $810-$830 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $49.50-$50.50 | $1091-$1113 | $990-$1010 | neutral |