Spot market prices for US domestic base-price HDG and Galvalume coil have softened by approximately $3 cwt. ($66/mt or $60/nt) week-over-week, and sources say they believe that additional softening is "more likely than not."
Current prices for both products are now being heard at approximately $48-$49 cwt. ($1,058-$1,080/mt or $960-$980/nt), FOB mill, against a range of $51-$52 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) FOB mill. Similar to last week, deals as low as $46 cwt. ($1,014/mt or $920/nt) FOB mill, are still being heard throughout the marketplace.
Lead times, sources note, are “under 5 weeks.”
Lackluster end-use demand, service centers’ fear of restocking in an uncertain price environment, and soft October scrap prices are among the factors placing downward pressure on the market.
“I think with hot rolled [prices] still falling, that HDG prices still have some adjusting to do,” a source said. “I don’t think any of us would be surprised if [base-price HDG and Galvalume coil] ticked down another $3-$4 cwt. ($66-$88/mt or $60-$80/nt) by the middle of next month.”