The trend for domestic hot dipped galvanized (HDG) is pointing upward this week as November price increases continue to hold, and more increase announcements are expected after the Thanksgiving holiday.
Spot prices for HDG and Galvalume base products and extras remain at last week's levels, although firmer order books in recent weeks have significantly decreased the availability of offerings in the lowest end of the ranges. Additional price increase announcements of about $1.50 cwt. ($33/mt or $30/nt) are expected after the Thanksgiving holiday effective for orders after January 1, however whether or not the full amount will stick remains debated.
On the demand side, according to the latest American Iron and Steel Institute (AISI) and the Metal Service Center Institute (MSCI) statistics, shipments from US mills and service centers have not dropped off significantly in past months as compared to year ago periods. Mill shipments in September were down 1.2 percent from the prior month, but were still up 23.3 percent over September 2009. Service center shipments, while falling 4.6 percent from September to October, were still up 15.8 percent from October of last year.
For now, price tendencies for HDG products point upward, however the coated market trend in 2011 will be dependent on various factors, perhaps most importantly- mill capacity levels. As a result, increased tonnage brought on by the new ThyssenKrupp plant in Calvert, Alabama could be the wild card in the domestic US flat rolled market. ThyssenKrupp's pricing levels are expected to be extremely competitive as "profitability isn't on the top of their list in the US; they're much more concerned about market share," according to one manufacturer in the South.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $32-$34 | $705-$750 | $640-$680 | Neutral |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $43-$45 | $948-$992 | $860-$900 | Neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $43-$45 | $948-$992 | $860-$900 | Neutral |
| Galvalume | ||||
| ex-Midwest mill | $32-$34 | $705-$750 | $640-$680 | Neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $43-$45 | $948-$992 | $860-$900 | Neutral |
On the import side, sources indicate that most, if not all, Mexican mills are booked through the balance of the year on coated products, and imports of Chinese, Indian, or Taiwanese HDG products remain quiet, and there are few, if any, firm offers available.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| China | $47-$48 | $1,036-$1,058 | $940-$960 | neutral |
| India | $46-$47 | $1,014-$1,036 | $920-$940 | neutral |
| Mexico | $42-$44 | $926-$970 | $840-$880 | neutral |
| 0.019"x48" G90 | ||||
| China | $44-$46 | $970-$1,014 | $880-$920 | neutral |
| Mexico | $42-$44 | $926-$970 | $840-$880 | neutral |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| China | $45-$46 | $992-$1,014 | $900-$920 | neutral |
| Mexico | $42-$44 | $926-$970 | $840-$880 | neutral |
| Taiwan | $44-$46 | $970-$1,014 | $880-$920 | neutral |