US domestic HDG prices on the move

US domestic coated flat steel spot prices have continued their movement upward in the last week, a trend poised to continue in the near term. Domestic flats mills' price increases were well-timed, according to SteelOrbis sources, as it appears there was enough pent up demand to fuel the higher prices.  Although purchasing activity is not particularly robust at the moment, it remains steady despite increasingly higher prices. Hot dipped galvanized (HDG) and Galvalume coil base spot prices have risen to $34.00-$36.00 cwt. ($750-$794/mt or $680-$720/nt) ex-Midwest mill, up $1.00 cwt. ($22/mt or $20/nt) on the high end since last week. While mills are pushing for the higher prices from smaller buyers, customers with more tons to place have been able to secure slightly lower prices.

As a result of these lingering deals, as well as to keep the upward momentum from slowing, rumblings of yet another price increase have surfaced. Although such talk was initially heard late last week, a recent mechanical failure at AK Steel's Ohio mill that forced the company to take its blast furnace offline, is adding fuel to the fire. Not to mention, predictions for the July scrap market are now upwards of $20-$30/lt. US domestic mills are competing with imports on HDG and Galvalume coil given competitive pricing offshore, but import orders placed today wouldn't arrive until Q4 anyhow, so any short term needs are being met almost exclusively with domestic material.