Order entries have increased (but not to such an extent that will balance over-supply and demand), according to industry sources, because people are afraid of holding off one day only to see prices go up the next. Yet just because announcements are being made, that doesn't help challenges relating to over capacity.
While it's believed that some of the mills are trying to make adjustments in overall output, Severstal NA has been the only one to seriously curb production, and a number of buyers have reported that unless Nucor and ArcelorMittal follow suit, it's feared the relatively sideways movement in transaction pricing for coated products may only be temporary.
Others, however, are more optimistic. "I think it's safe to say that HDG will move off the floor, but the real question is where it will settle" commented one Midwest buyer.
End-use segments, as previously reported, while holding below ideal activity levels, are still showing signs of recovery. Case in point: last week's report by Appliance Magazine that the Appliance Manufacturing Index found that economic activity in the manufacturing sector expanded in July for the 12th consecutive month. The Electrical Equipment, Appliances & Components industry was the fourth highest in the index growth ranking for July, they said.
For now, though, the forecast for US domestic HDG will remain at neutral to slightly up, as previously seen $2.00 cwt. spreads in average transaction pricing having tightened up $1.00 cwt. from the bottom end.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $33- $34 | $728 - $750 | $660-$680 | ↑ $1.00 cwt. from low end |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $44 - $45 | $970- $992 | $880-$900 | ↑ $1.00 cwt. from low end |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $43 - $44 | $948 - $970 | $860-$880 | ↑ $1.00 cwt. from low end |
| Galvalume | ||||
| ex-Midwest mill | $32 - $33 | $705 - $727 | $640-$660 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $45 - $46 | $992 - $1,014 | $900-$920 | ↑ $1.00 cwt. from low end |
Shifting focus to offshore offers, China seems to be the only major player currently offering, although with their new $0.50 cwt. ($11/mt or $10/nt) increase on coated products (following the $1.00 cwt. ($22/mt or $20/nt) from last week), considering the ever mounting uncertainty within the US domestic market, very few, if any, traders are entertaining offers.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| China | $45.50-$47.50 | $1,003-$1,036 | $910-$950 | ↑ $0.50 cwt. |
| 0.019"x48" G90 | ||||
| China | $44.50-$46.50 | $981-$1,025 | $890-$930 | ↑ $0.50 cwt. |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| China | $43-$44 | $948-$970 | $860-$880 | ↑ $0.50 cwt. |