Since last week, US domestic coated flat steel prices have declined, prompting at least one mill to announce a price increase. In the last couple weeks, flats mills have been heard cutting prices in order to attract orders, and as the discounts became increasingly widespread, the average spot prices declined, falling $1.00 cwt. ($22/mt or $20/nt) in the last week. Spots for hot dipped galvanized (HDG) and Galvalume base are now between $34.00-$36.00 cwt. ($750-$794/mt or $680-$720/nt) ex-Midwest mill, with activity on the lowest end of the range largely still only available for high volume buyers.
As prices started to fall early last week, rumors of a price increase began to spread; and by Monday, AK Steel sent a letter to customers announcing that it was raising all flat rolled prices $2.00 cwt. ($44/mt or $40/nt) immediately with new orders. Whether other mills follow suit, and if they raise prices by a similar level, will be more evident in the coming days. Sources tell SteelOrbis that because demand levels are decent, there are plenty of customers that have orders to place, and even a slight pickup in order activity could be enough to help mills firm up spot prices. However, whether flats mills will be able to withstand a possible sideways to even slightly down trend in scrap prices for February could be the real test of the HDG market's strength.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $34.00-$36.00 | $750-$794 | $680-$720 | ↓ $1.00 cwt. |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $44.00-$46.00 | $970-$1,014 | $880-$920 | ↓ $1.00 cwt. |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $44.00-$46.00 | $970-$1,014 | $880-$920 | ↓ $1.00 cwt. |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $34.00-$36.00 | $750-$794 | $680-$720 | ↓ $1.00 cwt. |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $44.00-$46.00 | $970-$1,014 | $880-$920 | ↓ $1.00 cwt. |