US domestic HDG price decline slows slightly

Although US domestic hot dipped galvanized (HDG) and Galvalume spot prices are still softening, the this week's decline has been more moderate than in previous weeks. US HDG base prices are down $1.00 cwt. ($22/mt or $20/nt) to $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill, under continuous pressure from both short lead times and high mill production rates. Meanwhile, the average spot prices on HDG 0.012"x40.875" G30 and HDG 0.019"x48" G90 have stayed mostly stable in the last week, although sources tell SteelOrbis that the more extras an item has, the more discounts and price adjustments mills are making, including lowering the base price or cutting freight costs.

Similarly, Galvalume base and 0.019x41.5625 Gr80/AZ55 spot price ranges are unchanged since last week, but most activity is on the lower end of the spot range.  Some of the deepest deals in the coated flat steel market continue to be on Galvalume products, where previously imported coils are still having an impact in the form of high US buyer inventories. With such significant price deterioration in the last couple months (average coated flat steel prices have fallen about $3.00 cwt. [$66/mt or $60/nt] since early May), industry insiders continue to believe a turnaround may soon be brewing, especially as raw steel production rates move slowly downward and a number of mills begin to take their planned outages in the next month or two.