US domestic HDG prices climb higher amid ongoing uncertainty

Tuesday, 24 July 2012 01:17:39 (GMT+3)   |  
       

Even as US domestic coated flat steel spot prices are trending higher, skepticism over announced increases hasn't subsided. Commonly, following a price increase announcement from mills (or anticipation of an increase), buyers begin to make hedge buys and lock-in mill offers in case prices go up, causing a mild flurry of activity. However, following $2.00 cwt. ($44/mt or $40/nt) increase announcements from all US domestic flats mills earlier this month, purchasing activity for hot dipped galvanized (HDG) and Galvalume coil hasn't improved much--most are still making as-needed purchases and aren't willing to stock inventories just yet.

Nonetheless, spot prices are inching higher, although a number of larger buyers tell SteelOrbis they have still only been forced to pay only a small--up to $0.50 cwt. ($11/mt or $10/nt)--increase so far. HDG and Galvalume base spot prices are up $1.00 cwt. ($22/mt or $20/nt) on the low end since last week to the range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill, and spot prices for certain coating extras have risen by a similar amount in tandem. But even as mill order activity remains largely flat, rumors of another increase for September orders are mounting, and a second increase could come as soon as the end of July.

 Cwt.Metric Ton (mt)Net ton (nt)Change from last week
US domestic HDG base price$35.00-$36.00$772-$794$700-$720↑ $1.00 cwt. on low end
     
0.012"x40.875" G30    
ex-Midwest mill$45.00-$47.00$992-$1,036$900-$940↑ $1.00 cwt. on low end
     
0.019"x48" G90    
ex-Midwest mill$45.00-$46.00$992-$1,014$900-$920↑ $1.00 cwt. on low end
     
US domestic Galvalume base price     
ex-Midwest mill$35.00-$36.00$772-$794$700-$720↑ $1.00 cwt. on low end
     
0.019x41.5625 Gr80/AZ55    
ex-Midwest mill$46.00-$47.00$1,014-$1,036$920-$940↑ $1.00 cwt.


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