Spot market prices for US domestic HDG and Galvalume coil have continued to soften since our last report a week ago. Current prices are down by another $2.00 cwt. ($44/mt or $40/nt) in the past 10 days, which brings the current range to $55-$57 cwt. ($1,213-$1,257/mt or $1,100-$1,140/nt), FOB mill. This is the second $2.00 cwt. ($44/mt or $40/nt) drop in as many weeks.
This is a huge contrast to where prices were in the first week of January, when HDG and Galvalume coil were trending at approximately $102 cwt. ($2,249/mt or $2,040/nt), FOB mill. Lead times are still relatively short, sources note, adding it does not appear as if Nucor’s $2.50 cwt. ($55/mt or $50/nt) price increase announcement last week spurred a flurry of buying activity.
“The other mills never announced, and the overall lead times are still at 6-7 weeks,” a source said. “Everyone keeps saying they think we’re at or near the bottom, but they’ve been saying that for the past 6 weeks. Who knows how low this thing will go before it settled.”
Historical data show this is the lowest that prices for these products have been since late December 2020. Additional downward revisions are expected next week.