The pricing downtrend within the US domestic hot dipped galvanized (HDG) coil market has exhibited signs of slowing, as only minor corrections have been noted since our last report a week ago. The most commonly reported spot price transaction range for base-price HDG coil has narrowed by approximately $1.00 cwt. ($22/mt or $20/nt) on the top end in the past seven days, bringing the current average span to $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt), ex-Midwest mill; spot prices for HDG 0.012” x40.875” G30 have also corrected by about $1.00 cwt. ($22/mt or $20/nt), which may have brought prices for that product segment to their floor, as prices for US domestic hot rolled coil (HRC) are believed to be at or very near bottom.
The challenges for US domestic HDG are the same as they were a week ago; supply is continuing to outpace demand. Order activity and inquiries are good, according to SteelOrbis sources, but inventory levels remain healthy and there “continues to be quite a bit of import tons that are sitting on the docks without a home.” What is interesting, though, is rumors of US mills engaging in quiet deal-making as a means of padding their order books. If a trade case is filed going into the second quarter and offshore producers are knocked out of the market, even temporarily, this could set the stage for price increase announcements within the US domestic market.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $30-$31 | $661-$683 | $600-$620 | down $1.00 cwt. on top end |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $39-$41 | $860-$904 | $780-$820 | down $1.00 cwt. |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $39-$41 | $860-$904 | $780-$820 | neutral |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $31-$33 | $683-$728 | $620-$660 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $40-$42 | $882-$926 | $800-$840 | neutral with rumored deals |