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.