Spot prices within the US domestic hot dipped galvanized (HDG) and Galvalume coil may have exhibited two weeks of back-to-back firming earlier this month after NLMK USA, Nucor Sheet Mill Group, AK Steel, California Steel Industries (CSI) and ArcelorMittal USA announced an effective immediately increase announcements, but sources close to SteelOrbis feel the price increase trend may have stalled.
In the early part of last week, the most commonly reported spot price transaction range for base price HDG coil was trending in the approximate range of $24.50-$26.50 cwt. ($540-$584/mt or $490-$530/nt), ex-Midwest mill, but by the end of the week, prices bumped up another $0.50 cwt. ($11/mt or $10/nt), bringing the range to approximately $25.00-$27.00 cwt. ($551-$595/mt or $500-$540/nt), ex-Midwest mill.
Order activity is steady, but has started to level off, sources say, noting that HDG inventories may finally be “right sized. Lead times are starting to trend out but no one is in any sort of panic mode,” one source said. “People still have plenty of time to book orders if they know they’re going to need to inventory gaps.”
Others cite concern that current price points could begin to erode if scrap prices falter during the February buy cycle, but at current, February scrap prices are forecast to maintain a sideways, if not strong sideways trend.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $25.00-$27.00 | $551-$595/mt | $500-$540/nt | up $0.50 cwt. |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $37.00-$39.00 | $816-$860/mt | $740-$780/nt | up $0.50 cwt. |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $35.00-$37.00 | $772-$816/mt | $700-$740/nt | up $0.50 cwt. |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $26.00-$28.00 | $573-$617/mt | $520-$560/nt | up $0.50 cwt. |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $36.00-$38.00 | $794-$838/mt | $720-$760/nt | up $0.50 cwt. |