US domestic HDG coil buyers “taking it month by month”

Thursday, 26 January 2023 23:05:20 (GMT+3)   |   San Diego
       

Spot market prices for US domestic HDG coil have ticked up once again, but sources have been quick to say that they don’t plan to stock their warehouses in an uptrending market.

Current prices for base-price HDG coil are up by “about $0.50 cwt ($11/mt or $10/nt)” since our last report a week ago and are now hovering at $46.50-$49.50 cwt. ($1,025-$1,091/mt or $930-$990/nt), FOB mill. The latest uptick comes in wake of last week’s widespread $2.50 cwt. ($55/mt or $50/nt) price increase announcements.

Spot market prices for US domestic 012 G30 coil are trending about $10 cwt. ($220/mt or $200/nt) above that range.

“I think a lot of us are just taking things month by month, and I’ve talked to some service centers who say they’re still cleaning out higher-priced steel that they purchased last year out of their inventories,” a source said, adding that he’s widely skeptical that the full increase will take hold.

“I also don’t think that anyone is in any rush to take on big positions at this point because everyone is concerned of the downside risk. Granted, the downside risk probably isn’t huge but when you add into it the high interest rates, the risk becomes a lot bigger.”

Another source said their company is also taking things “month-by-month” and that they plan to continue to manage their inventory levels tightly until the state of the market is clearer.


Similar articles

Flat steel prices in local Taiwanese market - week 13, 2024

28 Mar | Flats and Slab

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

Turkey’s coated steel export prices weaken

20 Mar | Flats and Slab

MMK reports record coated rolled product shipments to local market in 2023

19 Mar | Steel News

US HRC prices still ticking downward, prices expected to bottom this month

15 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 11, 2024

14 Mar | Flats and Slab

CRC and coated steel prices in Turkey down slightly, discounts applicable

13 Mar | Flats and Slab

Tata Steel chooses Danieli for pickling and galvanizing line investment

12 Mar | Steel News

Baosteel keeps local HRC prices stable for April

12 Mar | Flats and Slab