US domestic hot dipped galvanized (HDG) spot prices have firmed in the last week but the rising price trend may be short-lived.
Over the course of US domestic HDG spot prices softening between April and August, domestic mills had been making large discounts on HDG and Galvalume coil products with coating extras in order to keep the base prices as high as possible. But in the last couple weeks, mills have pushing to collect the full cost of coating extras, resulting in HDG 0.019"x48" G90 spot prices increasing $0.50 cwt. ($11/mt or $10/nt) in the last week to $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) ex-Midwest mill. HDG base spot prices have not moved since last week and still range from $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) ex-Midwest mill, but the bottom of the range is likely to firm by next week. Galvalume base spot prices have stayed neutral in the last week as well and also currently range from $39.00-$41.00 cwt., although Galvalume 0.019x41.5625 Gr80/AZ55 spot prices are up $1.00 cwt. ($22/mt or $20/nt) on the high end to $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) ex-Midwest mill.
However, while domestic spot prices (including extras) for coated flat steel products have firmed consecutively over the last two weeks, spot prices are still not in line with official mill asking prices which are now about $42.00 cwt. ($926/mt or $840/nt) ex-mill for HDG and Galvalume base, following $2.00-$2.50 cwt. ($44-$55/mt or $40-$50/nt) increases from all major flat-rolled mills in the last week, which were in addition to $3.00 cwt. ($66/mt or $60/nt) price increases announced in early August.
Domestic HDG demand has been steady in the last couple weeks as some mills' order books have now moved into the latter half of October, but it is not strong enough for mills to collect on the full $5.00 cwt. ($110/mt or $100/nt) in increases they have announced since early August. Industry insiders tell SteelOrbis that the possibility of spot prices reflecting the full increases is "slim to none," unless there are major cutbacks in mill production.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $39.00-$41.00 | $860-$904 | $780-$820 | neutral |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $50.00-$51.00 | $1,102-$1,124 | $1,000-$1,020 | neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $50.00-$52.00 | $1,102-$1,146 | $1,000-$1,040 | ↑$0.50 cwt. |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $39.00-$41.00 | $860-$904 | $780-$820 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $49.00-$51.00 | $1,080-$1,124 | $980-$1,020 | ↑$1.00 on high end |
Import activity in the US has been less lively in the last week, and while traders have received no new offers from offshore mills--resulting in no change in HDG import prices for the US--import activity isn't completely silent, either. US buyers are placing sporadic orders with Indian and Chinese mills for HDG 0.012"x40.875" G30, a common import item, but there is little activity evident for much else. By mid-September, however, import HDG and Galvalume delivery dates from most offshore sources will be moving quickly into January, by which time traders anticipate a boost in activity.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $50-$51 | $1,102-$1,124 | $1,000-$1,020 | neutral |
| China* | $48.50-$49.50 | $1,069-$1,091 | $970-$990 | neutral |
| Mexico** | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $49.50-$50.50 | $1,091-$1,113 | $990-1,010 | neutral |
| India* | $52-$54 | $1,146-$1,190 | $1,040-$1,080 | neutral |
| Mexico** | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| Taiwan* | $53-$55 | $1,168-$1,213 | $1,060-$1,100 | neutral |
| Import Galvalume offers to the US | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| Taiwan* | $52.50-$53.50 | $1,157-$1,179 | $1,050-$1,070 | neutral |
| Mexico** | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| India* | $53-$54 | $1,168-$1,190 | $1,060-$1,080 | neutral |
**DDP loaded truck delivered into Houston