While US domestic hot dipped galvanized (HDG) and Galvalume spot prices are poised to continue their upward climb, many still aren't willing to purchase anything beyond replacement inventory. In the past week, HDG base spot prices have firmed on the low end by $1.00 cwt. ($22/mt or $20/nt) and are now between $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill. But while essentially all producers are quoting at least a portion of their October-announced $2.00 cwt. ($44/mt or $40/nt) price increase, there are deals to be made as some mills are still cutting prices as needed in order to fill up order books.
A second price increase has essentially been anticipated ever since the first increase was announced, and mills are expected to follow AK Steel's lead with another increase in the coming days-on Monday, AK Steel sent a letter to customers indicating another $2.50 cwt. ($55/mt or $50/nt) price hike effective immediately. Further, with domestic scrap prices looking like they will settle up $40-$50/lt for November, it may be just the boost buyers need to begin making some inventory-build purchases. Even so, one service center source explained that with some mills still undercutting one another for orders, "there lacks the united front necessary to not only raise prices, but give customers the confidence to start placing orders."
Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
US domestic HDG base price | $34.00-$35.00 | $750-$772 | $680-$700 | ↑ $1.00 cwt. on the low end |
0.012"x40.875" G30 | ||||
ex-Midwest mill | $44.00-$45.00 | $970-$992 | $880-$900 | neutral |
0.019"x48" G90 | ||||
ex-Midwest mill | $44.00-$45.00 | $970-$992 | $880-$900 | neutral |
US domestic Galvalume base price | ||||
ex-Midwest mill | $34.00-$35.00 | $750-$772 | $680-$700 | ↑ $1.00 cwt. on the low end |
0.019x41.5625 Gr80/AZ55 | ||||
ex-Midwest mill | $44.00-$45.00 | $970-$992 | $880-$900 | neutral |