US domestic HDG prices soft but stable

In the last week, US domestic coated flat steel spot prices have managed to stave off any further declines, but current price levels are still far from firm. After weeks of consecutive price softening, hot dipped galvanized (HDG) and Galvalume spot prices are unchanged from levels reported a week ago. Prices can't fall much further, according to SteelOrbis sources, as mill margins are already squeezed. Steady demand continues to keep buying activity at a steady level, but the buy-as-you-need mentality has prevented mills from extending lead times.

Coated flat steel lead times are about four to six weeks, depending on the mill, but buyers have reported receiving orders on some products earlier than anticipated so whether or not spots have reached a bottom or are close remains to be seen. Buyers aren't pushing for significant discounts, according to sources, but rather mill competition and the lack of a spot market due to the previously reported sub-CRU deals have been the most detrimental to current spot prices. Some hope comes from anticipation that scrap prices have upward potential in the next couple months, which could result in another mill attempt to push up spot prices. But for now, any potential price increases remain only rumors.