US HDG prices show signs of weakness amid cautious purchasing activity

Tuesday, 17 April 2012 01:51:42 (GMT+3)   |  
       

US domestic hot dipped galvanized (HDG) and Galvalume spot prices continue to trend neutral despite mills' best efforts to raise prices. Sources tell SteelOrbis that most US buyers continue to push back against the two announced increases in the last month, and while some have been forced to pay slight--no more than $0.50 cwt. ($11/mt or $10/nt--increases, there has been some deal-making for below current prices as well. Although the increase announcements stopped the price slide, mills have had to be more flexible with spot prices in the last week in light of weaker than anticipated order books and ongoing competition from other domestic mills.

As a result, some buyers have been able to purchase spot tons of HDG 0.012"x40.875" G30 and 0.019"x48" G90 for just under the $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) ex-Midwest mill range. For the time being, such deals aren't widespread, and for the most part, domestic buyers are holding off making any major purchases; sources indicate that inventories are more than sufficient, especially with lead times as short as five to six weeks. Consequently, purchasing activity is expected to remain on an as-needed basis until inventory levels wind down.

 Cwt.Metric Ton (mt)Net ton (nt)Change from last week
US domestic HDG base price$37.00-$39.00$816-$860$740-$780neutral
     
0.012"x40.875" G30    
ex-Midwest mill$48.00-$50.00$1,058-$1,102$960-$1,000neutral
     
0.019"x48" G90    
ex-Midwest mill$48.00-$50.00$1,058-$1,102$960-$1,000neutral
     
US domestic Galvalume base price     
ex-Midwest mill$37.00-$39.00$816-$860$740-$780neutral
     
0.019x41.5625 Gr80/AZ55    
ex-Midwest mill$48.00-$50.00$1,058-$1,102$960-$1,000netural


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