Despite US domestic flat steel mills’ desire to push prices higher, the US HDG market is still trending soft. Prices, sources note, are all over the map.
For example, base price HDG coil spot market prices have softened since our last report a week ago, whereas base price Galvalume coil prices have remained steady. On the other hand, spot market prices for 0.019x41.5625 Gr80/AZ55 Galvalume coil have shown improvement due to “good activity” within the construction sector. “Despite the global pandemic, most domestic construction projects have been renewed,” a source said.
In terms of whether last week’s price increase announcements will start to gain traction, sources say they’re skeptical that prices are set for an upswing, noting concerns that mills’ capacity utilization and steel production rates are outpacing market demand.
It should also be noted that while Donald Trump’s advisors are still predicting a V-shaped recovery, now that coronavirus infection rates are surging in states throughout the US, others are pointing that economic recovery cannot be disentangled from the virus. “It’s all a lot of wait-and-see, because everything is fluid right now,” another source said. “Like it or not [coronavirus] is still pulling the strings.”
Current HDG and Galvalume coil pricing is listed in the chart below.
| Product | $/cwt | $/mt | $/nt | Delivery | Weekly change |
| US domestic HDG base price | $30-$32 | $661-$705 | $600-$640 | ex-mill | down $1.00 cwt. |
| US domestic Galvalume base price | $31-$33 | $683-$728 | $620-$660 | ex-mill | neutral |
| 0.019x41.5625 Gr80/AZ55 | $42-$43 | $926-$948 | $840-$860 | ex-mill | up $1.00 cwt. On the bottom end. |