Are US HDG spot market prices set for an uptrend?

The months-long downtrend in US domestic hot dipped galvanized (HDG) coil spot market prices could be coming to an end.

NLMK USA, California Steel Industries, US Steel and Nucor Sheet Mill Group have all announced they will be implementing a $1.50 cwt. ($33/mt or $30/nt) price increase on flat rolled steel products, including US domestic HDG coil, effective for all new orders.
The big question, buyers say, is whether this price increase will take immediate hold, or if it will merely set a bottom for US HDG spot market prices. 

“We all expected the price increase announcements were coming,” one Midwest-based source said, adding that opinions as to whether the current increase “will move the price needle north” are split.  “I think a lot of people are going to take a moment to look at their needs, where they anticipate their sales will be and what their inventories look like before they rush out and book large orders,” another source said.  “When people do jump in, prices will firm and lead times will stretch out.”

Current ex-Midwest mill lead times are still trending at “about five weeks,” a third source added.

At current, the most commonly heard spot market price transaction range for base-price US domestic HDG coil continues to hold at $35-$36 cwt. ($772-$794/mt or $700-$720/nt), ex-Midwest mill, reflecting no change since our last report a week ago.