Temporary sideways move for US domestic HDG

As with other US domestic flats products, US domestic hot dipped galvanized (HDG) transaction pricing has trended sideways since our last report a week ago, while buyers and sellers are still determining how the $35/long ton decline in busheling scrap pricing will impact an already soft market. 

"It's just really rough out there. The average guy's business has fallen off and they're continuing to take inventories to new lows", said one trader in the Northeast.  But with buyers having remained especially cautious, and for the most part, refrained from buying in June, it's anticipated that reserved restocking will soon begin to reemerge.  However, with the continued softening seen for commercial and residential construction, compounded with last week's weakened forecast for the US automotive market, the current forecast for coated products remains less favorable than other product lines in the flats sector.

It should be noted, that although the below pricing reflects relative stability since our last report a week ago, that the forecast for HDG and Galvalume remains slightly down, with the strong likelihood of additional price corrections to take place as the month moves forward.

Switching focus overseas, Chinese and Indian offerings have trended sideways since our last report a week ago, although a $1.00 cwt. ($22/mt or $20/nt) dip has been seen for offerings of Chinese Galvalume 0.019x41.5625 Gr80/AZ55; however, updated pricing announcements are anticipated to make their way to traders' desks later this week.