US domestic HDG prices steady but market weakness grows

While the majority of US domestic flat rolled mills are quoting lead times that are out until mid- to late April, a few mills are still offering shorter--six to eight week--lead times. So although demand is still firm, pockets of weakness have started to emerge; and while mills haven't been particularly inclined to cut too many deals yet, domestic hot dipped galvanized (HDG) and Galvalume base spot prices have remained stable in the last week, at $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt) and $41.00-$43.00 cwt. ($904-$948/mt or $800-$860/nt), respectively, ex-Midwest mill. Demand for Galvalume continues to hold up especially well, as availability remains scarcer.

Nonetheless, although prices haven't started to decline, they likely will within the next couple weeks and buyers have already slowed purchasing activity under the expectation that spot market prices hinge on a correction. Sources tell SteelOrbis that once order entry rates slow enough and lower-priced imports pour into US ports over the next couple months, mills are more likely to begin cutting deals to fill order books and maintain their market share.