Extending lead times bolster US domestic HDG prices

Tuesday, 29 November 2011 02:39:48 (GMT+3)   |  

US domestic mills are now quoting January deliveries on all new hot dipped galvanized (HDG) and Galvalume coil orders as a result of strong order entry rates the last couple weeks. However, industry insiders tell SteelOrbis that most orders for December shipments were largely booked at pre-increase levels and only now are mills beginning to seriously push for--and collect--on their early November price hikes. As such, HDG 0.012"x40.875" G30 and HDG 0.019"x48" G90 have firmed $1.00 cwt. ($22/mt or $20/nt) on the low end since last week to $50.00-$51.00 cwt. ($1,102-$1,124/mt or $1,000-$1,020/nt) ex-Midwest mill.

Considering a second round of price hikes started last week by Severstal North America, which aims to bring HDG and Galvalume base spot prices to $40.50 cwt. ($893/mt or $810/nt), order activity is anticipated to be strong in the final days of November/early December as well, with an increase in hedge buying against higher prices. However, while domestic HDG and Galvalume spot prices are moving up, they remain well below official prices. Buyer sources tell SteelOrbis that with the exception of a few extra tons booked here and there in case prices do continue to rise, they remain extremely cautious with all purchases, with most buys still on an as-needed basis.

  Cwt. Metric Ton (mt) Net ton (nt) Change from last week
US domestic HDG base price $36.00-$38.00 $794-$838 $720-$760 neutral
         
0.012"x40.875" G30        
ex-Midwest mill $50.00-$51.00 $1,102-$1,124 $1,000-$1,020 ↑$1.00 cwt. on low end
         
0.019"x48" G90        
ex-Midwest mill $50.00-$51.00 $1,102-$1,124 $1,000-$1,020 ↑$1.00 cwt. on low end
         
US domestic Galvalume base price         
ex-Midwest mill $36.00-$37.00 $794-$816 $720-$740 neutral
         
0.019x41.5625 Gr80/AZ55        
ex-Midwest mill $49.00-$50.00 $1,080-$1,102 $980-$1,000 ↑$1.00 cwt. on low end

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