US HDG market expected to clarify after Labor Day

Last week, many in the US steel market had all eyes on Hurricane Harvey, which dumped more than 50 inches of rain in Houston and its surrounding areas. Many market players throughout Texas region were offline for the week, as they scrambled to assess damage to their inventory. In other parts of the US, buyers and sellers of US domestic hot dipped galvanized (HDG) coil were readying themselves for the Labor Day holiday and as such, overall market activity trended light.

This week, however, as people throughout the US return to work, it’s expected that the US HDG market will see additional price clarity. It’s further speculated that Hurricane Harvey could have an impact on spot market prices, due to still-unknown losses of both on the ground HDG coil and import HDG coil at the Port of Houston.

On the other hand, some point out that inventory levels are still bloated, as buyers double-booked orders at the time the Section 232 case was announced; some believe that market prices could remain stable until those inventory levels are worked through.

For now, prices remain stable. Current price points for US HDG coil are listed in the chart below.