Price descent persists in US HDG market

Coated flat steel spot market activity in the US is marginal, as lead times shrink and mill order books remain lackluster. With customers anticipating lower prices with each passing week, buyers continue to delay purchases. As expected, there has been little to perk up the US domestic flat rolled market in recent weeks, and spot prices have drifted lower again in the last week. With lead times on hot dipped galvanized (HDG) and Galvalume coil only about four weeks (although some customers report receiving orders even sooner) and customers minimally active on the spot market, prices have had nowhere to go but down.

While mills are aiming to enforce slightly higher prices on smaller orders, sources tell SteelOrbis that it wouldn't take an exceptionally large order to attain deals on the lower end of the current price ranges. Since last week, HDG and Galvalume base spot prices have fallen to the lower end of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill, with deals $0.50 cwt. ($11/mt or $10/nt) under the range not uncommon. Meanwhile, deals even lower on HDG 0.012"x40.875" G30 and HDG 0.019"x48" G90 have been heard, and expectations point to prices dropping yet again by next week.