Spot price ranges in the US domestic hot dipped galvanized (HDG) market have been on a neutral trend over the past week as spot order activity remains relatively consistent, but slower than in February and early March.
HDG and Galvalume base spot prices are still $49.00-$50.00 cwt. ($1,080-$1,102/mt or $1,080-$1,102/nt) ex-Midwest mill while spot prices for coating extras are holding steady at $60.00-$62.00 cwt. ($1,323-$1,367/mt or $1,200-$1,240/nt) ex-Midwest mill.
Service center inventories for coated products have stayed lean relative to other flat-rolled products, such as hot and coil rolled coil, which had been driving steady spot market purchasing activity. But while lead times are now entirely into May for HDG, order books are lighter than they have been over the last few weeks and months. Order activity for HDG has not slowed enough in recent weeks to seriously alarm mill sales people yet, but a number of factors will create downward pressure on spot prices during the second quarter.
For example, end-use demand levels, while consistently better than 2010, are still only mediocre. The automotive market looks to be strengthening, but the construction sector is only showing modest signs of recovery, taking a major step backward in February. The US Census Bureau reported in mid-March that privately-owned building permits fell 8.2 percent month-over-month in February, while housing starts sank 22.5 percent over the same period.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $49-$50 | $1,080-$1,102 | $980-$1,000 | neutral |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $60-$62 | $1,323-$1,367 | $1,200-$1,240 | neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $60-$62 | $1,323-$1,367 | $1,200-$1,240 | neutral |
| Galvalume | ||||
| ex-Midwest mill | $49-$50 | $1,080-$1,102 | $980-$1,000 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $60-$62 | $1,323-$1,367 | $1,200-$1,240 | neutral |
Another substantial factor which could speed up the inevitability of lower spot prices is that competitively priced imports are fighting to grow their market share in the US. Since late February, HDG prices in the Chinese market have been slowly trending downward, and Chinese traders are growing more eager to sell-off product. Chinese HDG offers to the US are already the most competitively-priced, and are expected to dip further in the next few weeks. Elsewhere, traders indicate that "small tons here and there" are being booked at Indian mills, who are offering mid-May delivery for coated products for at least $5.00 cwt. ($110/mt or $100/nt) below US domestic levels.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | neutral |
| China* | $53-$55 | $1,168-$1,213 | $1,060-$1,100 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $53-$55 | $1,168-$1,213 | $1,060-$1,100 | neutral |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| India* | $55-$57 | $1,213-$1,257 | $1,100-$1,140 | neutral |
| Taiwan* | $56-$58 | $1,235-$1,279 | $1,120-$1,160 | neutral |
| China* | $56-$58 | $1,235-$1,279 | $1,120-$1,160 | neutral |
| Mexico** | $59-$61 | $1,301-$1,345 | $1,180-$1,220 | neutral |
**FOB loaded truck delivered into Houston ports