Although “official” spot market prices for US domestic HDG and Galvalume coil have remained steady in the last week, sources tell SteelOrbis that deals based on volume are still available.
Current base prices for both products are still being heard at $51-$52 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) FOB mill, but sources say deals have been heard as low as $46 cwt. ($1,104/mt or $920/nt) FOB mill. The deals “make sense,” sources say, considering the wide gap that still exists between HRC and HDG coil—the official gap should eventually settle around $10 cwt. ($220/mt or $200/nt), and HRC spot prices are currently around $35-$38 cwt. ($772-$838/mt or $700-$760/nt), FOB mill.
Sources say service centers are still buying cautiously from mills due to high interest rates and economic uncertainties, and as such, inventories are still thin and lead times are relatively short.