A strong-sideways trend for US domestic scrap prices this month have helped to keep spot market prices for US domestic hot dipped galvanized (HDG) and Galvalume coil stable; mill capacity utilization continues to flutter around 75 percent, but many still believe that the still-pending restrictions on imported steel, due to the Section 232 investigation, could prove positive for buyers and sellers of US domestic HDG.
Last week, Congressman Pete Visclosky (D-Indiana) wrote an op-ed highlighting a strong desire that the Section 232 investigation “moves forward as expeditiously as possible and that President Trump takes decisive action to support American steelworkers and our ability to defend our nation. Every extra day that we wait for it to be completed, and for subsequent action to be taken, is another day that illegal steel imports threaten the strength of our steel industry.”
And while a handful of trading companies are still quoting customers, others say they’ve stopped offering until the domestic landscape, and the outcome of the Section 232 investigation, is clearer.
Data from the US Department of Commerce shows that for the month of April, the US imported 298,944 mt (license data) of hot dipped galvanized sheets and strip from global sources; the bulk of those imports came from Canada (76,371 mt), while Mexico shipped 4,569 mt of HDG sheets and strip to the US. Looking offshore, Turkey shipped 30,189 mt, South Africa shipped 28,822 mt, and Taiwan shipped 25,699 mt.
“If you remove those tons from the domestic market you can guarantee the domestic mills will raise their prices,” a source said.
In terms of current spot market prices, SteelOrbis sources continue to report that prices are stable, although deals continue to be available to volume buyers. Today, the most commonly heard spot price transaction range for base price US domestic hot dipped galvanized (HDG) continues to trend at $40.50-$42.50 cwt. ($893-$937/mt or $810-$850/nt), ex-mill.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $40.50-$42.50 | $893-$937 | $810-$850 | neutral with deals |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $46-$48 | $1014-$1058 | $920-$960 | neutral with deals |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $46-$48 | $1014-$1058 | $920-$960 | neutral with deals |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $40.50-$42.50 | $893-$937 | $810-$850 | neutral with deals |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $47-$49 | $1036-$1080 | $940-$980 | neutral with deals |