US domestic HDG market remains strong

Despite more quiet this past week, US domestic coated flat steel spot prices have not lost any ground. Flat rolled steel spot prices in the US have had a rare week of stability following about six to seven weeks of continuous upticks in pricing. Now that hot dipped galvanized (HDG) and Galvalume spots have largely reached official mill asking prices, buyers anticipate a fourth round of price increases. However, last week's rumblings that a fourth increase was "imminent" have quieted, and sources tell SteelOrbis that mills could still announced another increase, but are cautious to not invite more import activity into the market.

Futures offers from China have only increased slightly in response to rising US domestic spot prices and Indian offers have not moved at all. Even though import activity isn't particularly robust at the moment anyhow, there is concern that if US domestic prices rise too quickly, it would make futures more attractive by minimizing the risk. Nevertheless, with US domestic mills offering few deals, even on larger orders, and lead times for coated products already in September at some mills, another price increase remains the most probable scenario.