How high will US HDG prices go?

Monday, 21 November 2016 00:17:27 (GMT+3)   |   San Diego
       

In the early part of last week, SteelOrbis predicted that US domestic hot dipped galvanized prices would continue to firm. At that point, US domestic flat rolled steel mills had announced two, back-to-back $1.50 cwt. ($33/mt or $30/nt) price increase announcements.

Last week, US flat rolled steel mills announced a third.  The latest announcement indicated that mills panned to raise prices by an additional $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt), effective with all new orders.

In addition, US Steel and NLMK USA announced upward pricing revisions for Galvanized coating extras, due to “rising zinc prices.”

As such, US HDG prices have exhibited additional signs of firming.  Today, the most commonly reported spot price transaction range for US domestic base-price HDG coil has firmed by $1.00 cwt. on the top since our last report a week ago, which brings the current range to $37-$39 cwt ($816-$860/mt or $740-$780/nt), ex-Midwest mill.  Sources close to SteelOrbis note that current lead times are now trending "somewhere between five and nine weeks."

Although overall order activity is expected to trend light this week, due to the US Thanksgiving holiday, it is still believed that US HDG spot market prices have not yet reached their peak.

  Cwt. Metric Ton (mt) Net ton (nt) Change from last week
US domestic HDG base price $37-$39 $816-$860 $740-$780 up $1.00 cwt on the top end
         
0.012”x40.875” G30        
ex-Midwest mill $45-$46 $992-$1014 $900-$920 neutral 
         
0.019”x48” G90        
ex-Midwest mill $45-$46 $992-$1014 $900-$920 neutral
         
US domestic Galvalume base price        
ex-Midwest mill $37-$38 $816-$838 $740-$760 neutral
         
0.019x41.5625 Gr80/AZ55        
ex-Midwest mill $45-$46 $992-$1014 $900-$920 neutral


Similar articles

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

Turkey’s coated steel export prices weaken

20 Mar | Flats and Slab

MMK reports record coated rolled product shipments to local market in 2023

19 Mar | Steel News

US HRC prices still ticking downward, prices expected to bottom this month

15 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 11, 2024

14 Mar | Flats and Slab

CRC and coated steel prices in Turkey down slightly, discounts applicable

13 Mar | Flats and Slab

Tata Steel chooses Danieli for pickling and galvanizing line investment

12 Mar | Steel News

Baosteel keeps local HRC prices stable for April

12 Mar | Flats and Slab

US flats mills take primes down $60-$70/gt, announce HRC price increase

08 Mar | Flats and Slab