US domestic HDG prices flatten out

Both prices and activity in the US domestic coated flat steel market held steady ahead of the Labor Day holiday. The last week of August was laden with uncertainty--uncertainty over the domestic scrap price trend for September and uncertainty over whether or not there would be a work stoppage at two of the US' largest producers of coated steel products. Additionally, with many taking added time off ahead of the Labor Day holiday, activity levels have been stagnant as US buyers wait for clear signs regarding the market's next move. Although by the last couple days of August whether or not the steelworkers union would stage a strike was unclear, US buyers weren't rushing to stock inventories in case a strike does take place and prices rise.

Sources tell SteelOrbis that there's no shortage of hot dipped galvanized (HDG) or Galvalume available at US mills, and lead times remain relatively short at four to six weeks. Meanwhile, buyers are still filling holes as necessary as a few mills have been a bit more flexible with spot prices for larger buyers. At least for another week, though, no major swings in prices are expected, and HDG and Galvalume base prices will likely remain in the range of $37.00-$39.00 cwt. ($816-$860/mt or $740-$780/mt) ex-Midwest mill, with spot prices on base products with coating extras averaging about $10.00 cwt. ($220/mt or $200/nt) higher.