Lead times for US domestic HDG have been described as "shoddy at best," and while four to five weeks remains the general consensus, buyers have reported being able to get certain items even faster.
"Everyone is expecting prices to go down, and unless you absolutely have to buy you're going to hold off because prices will probably be cheaper next week," said one Midwest service center, indicating he's only making buys to plug holes within his inventory.
With an oversaturation of steel and news that the US economy has shed jobs for the past four months in a row, end-use purchasing activity is anticipated to taper off slightly as Q4 moves forward. Although the US Federal Reserve is anticipated to take additional steps to bolster the economy, many economists believe that actions, such as the lowering of interest rates, won't be taken until December before lowering interest rates. Lower interest rates, in general, stimulate borrowing, which could prove advantageous for the construction sector in 2011.
For now, though, the forecast for HDG is slightly down, with price stabilization not anticipated to take place until November. While the ranges listed below represent the most commonly reported transaction ranges, pricing on the higher end of the span is fading quickly, and it is expected that spot pricing will tick down as the week moves forward.
What's most interesting, though is that Galvalume 0.019x41.5625 Gr80/AZ55, the weakest product out of all the coated products, has ticked down approximately $2.00 cwt. ($44/mt or $40/nt) since our last report a week ago. Deals below the revised range, however, have been reported.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $33- $34 | $728 - $750 | $660-$680 | neutral trending down |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $44 - $46 | $970- $1,014 | $880-$920 | neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $44 - $46 | $970- $1,014 | $880-$920 | neutral |
| Galvalume | ||||
| ex-Midwest mill | $33-$34 | $728 - $750 | $660-680 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $43- $45 | $948-$992 | $860-$900 | ↓$2.00 cwt. |
Shifting focus offshore, import pricing has remained for the most part, neutral. Although Taiwan has reduced pricing on 0.012"x40.875" G30, and China has come down on offerings of Galvalume 0.019x41.5625 Gr80/AZ55, the new respective ranges for these products are not even close to warranting interest from buyers. Regardless as to the pricing levels of imports, the current volatility within the US domestic market is continuing to have weakening effect on interest in offshore products.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| China | $47-$48 | $1,036-$1,058 | $940-$960 | neutral |
| India | $46-$47 | $1,014-$1,036 | $920-$940 | neutral |
| Mexico | $42-$43 | $926-$948 | $840-$860 | neutral |
| Taiwan | $48-$49 | $1,058-$1,080 | $960-$980 | ↓ $1.00 cwt. |
| 0.019"x48" G90 | ||||
| China | $45-$47 | $992-$1,036 | $900-$950 | neutral |
| India | $46-$47 | $1,014-$1,036 | $920-$940 | new offer |
| Taiwan | $48-$49 | $1,058-$1,080 | $960-$980 | neutral |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| China | $46-$47 | $1,014-$1,036 | $920-$940 | ↓ $1.00 cwt. |
| Mexico | $43 - $44 | $948 - $970 | $860-$880 | neutral |
| Taiwan | $45-$47 | $992-$1,036 | $900-$940 | neutral |
*Mexican offers are FOB loaded truck US border states.
**Chinese, Taiwanese Indian, and offerings are duty-paid FOB loaded truck, US Gulf ports.