Last week, Nucor, AK Steel and NLMK USA all announced they would be raising prices for US domestic flat rolled steel products, including US domestic hot dipped galvanized (HDG) coil by a minimum of $1.50 cwt. ($33/mt or $30/nt), effective with all new orders.
And while the above stated mills did not set new, minimum base pricing for US HDG coil, ArcelorMittal USA (AMUSA) set minimum base pricing in their announcement. The AMUSA price increase letter indicated that the new, post-price increase price level for base HDG coil would be set at $42.50 ($937/mt or $850/nt), ex-mill.
Since the price increase announcement, spot market prices for base HDG coil have firmed by $0.50 cwt. on the bottom end, which brings the current average transaction range to $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt), ex-mill, although "quiet deals" are still available to the largest-volume buyers.
Sources close to SteelOrbis have indicated a strong belief that “it’s only a matter of time before the increase is fully accepted.” Other sources have reported a widespread belief that mills may push for a second price increase after scrap stops trading in March; US domestic scrap prices are expected to settle by mid-next week.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $41.50-$42.50 | $915-$937 | $830-$850 | up $0.50 cwt. on the bottom end |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $48.00-$49.50 | $1058-$1091 | $960-$990 | up $0.50 cwt. on the top end |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $48.00-$49.50 | $1058-$1091 | $960-$990 | up $0.50 cwt. on the top end |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $41.50-$42.50 | $915-$937 | $830-$850 | up $0.50 cwt. on the bottom end |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $49-$51 | $1080-$1124 | $980-$1020 | up $0.50 cwt. on the bottom end |