US domestic HDG prices have steadied in the past seven days after a multi-week downtrend. Some sources close to SteelOrbis question whether prices have bottomed or whether the past week’s stability is “the calm before the storm.”
“Prices are generally soft through the summer and while we’re all hopeful this is the bottom, I don’t think anyone would be surprised to see a few more revisions before it’s done,” a source said.
Other sources point to last week’s announcement that Section 232 tariffs against Mexico will be removed in the upcoming days, and question if that will place downward pressure on US pricing.
“It’s just an odd time for this deal to go through with the [domestic] pricing momentum where it’s at,” the source said. “Add Mexico and Canada back into the equation with all this capacity coming on in Q3, and that should make for an interesting second half of the year.”
Current US HDG spot market prices are listed in the chart below.
Product | $/cwt | $/mt | $/nt | Delivery | Weekly change |
US domestic HDG base price | $39-$41 | $860-$904 | $780-$820 | ex-mill | neutral |
US domestic Galvalume base price | $39-$41 | $860-$904 | $780-$820 | ex-mill | neutral |
0.019x41.5625 Gr80/AZ55 | $49-$51 | $1,080-$1,124 | $980-$1,020 | ex-mill | neutral |