Last week, US flat rolled steelmakers announced their fifth round of price increases. Nucor announced they would be raising prices on US domestic hot dipped galvanized (HDG) coil by $1.50 cwt. ($33/mt or $30/nt), ex-Midwest mill. NLMK USA announced a $2.00 cwt. ($44/mt or $40/nt) price increase; Arcelor Mittal USA (AMUSA), however, announced they would be implementing a new minimum base price of $41 cwt. ($904/mt or $820/nt) for base-price HDG coil.
Spot market prices have firmed since the announcement; today, the most commonly heard transaction range for base-price HDG coil has risen by $0.50 cwt. on the low end and by $1.50 cwt. on the top end, which brings the average transaction range to $40.50-$42.50 cwt. ($893-$937/mt or $810-$850/nt), ex-Midwest mill. The top end of that range is in line with the new minimum base price that was set by AMUSA.
Sources close to SteelOrbis have said that current lead times “are running anywhere from six to eight weeks,” adding that the price increase has been supported by upticks in US domestic scrap prices.
Year-on-year, prices are up substantially.
In mid-January 2016, SteelOrbis reported that the average transaction range for base-price HDG coil was trending at $24.50-$26.50 cwt. ($540-$584/mt or $490-$530/nt), ex-Midwest mill.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $40.50-$42.50 | $893-$937 | $810-$850 | up $0.50 cwt on the low end, up $1.50 cwt. on the top end |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $47.00-$49.50 | $1036-1091 | $940-$990 | up $0.50 cwt. on the low end, up $1.00 cwt. on the top end |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $47.00-$49.50 | $1036-1091 | $940-$990 | up $0.50 cwt. on the low end, up $1.00 cwt. on the top end |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $40.50-$42.50 | $893-$937 | $810-$850 | up $1.00 cwt. on the low end, up $2.00 cwt. on the top end |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $47.00-$49.50 | $1036-1091 | $940-$990 | up $0.50 cwt. on the low end, up $1.00 cwt. on the top end |