US domestic HDG prices still slipping, but turnaround may be near

Even before some US mills announced $1.50-$2.50 cwt. ($33-$55/mt or $30-$50/nt) flat rolled price increases in the latter half of last week, domestic hot dipped galvanized (HDG) and Galvalume spot prices were still falling. US HDG and Galvalume base spot prices are down $1.00 cwt. ($22/mt or $20/nt) from last week to $37.00-$39.00 cwt. ($816-$860/mt or $740-$780/nt) ex-Midwest mill, as pricing power still remains in customers' hands. High domestic supply levels and stagnant, if not contracting, lead times are driving US buyers to continue delaying orders for as long as possible.

It is too early to tell whether or not the increases will actually be able to firm up spot prices--a few industry insiders commented to SteelOrbis that with supply/demand levels unchanged, and a drop in March scrap prices, there may not be enough to support the increase, at least not for an extended period of time. Nonetheless, there has been a boost in inquiry and buying activity over the past couple days, which may be enough to at least stabilize prices for a short time.