US HDG, Galvalume coil prices still varied

Spot market prices for US domestic HDG and Galvalume coil are hard to pinpoint, sources note, adding that the range between the low end and high end of input prices remains wide. Lead times are still spanning between 10-12 weeks, and as discussed in our previous reports, spot tons are “still hard to come by.”

In terms of how HDG pricing will trend in the upcoming months, economists have said that the only constant in terms of the short and long-term predictions for finished steel pricing is that “change is constant.” New COVID-19 outbreaks (and potential lockdowns, which seem to be more prevalent abroad), can and will play a role in product availability, shipping, and pricing, as could the announcement of new maintenance outages and unplanned capacity delays. For example yesterday, Steel Dynamics announced a one-month delay in the opening of their galvanizing line at their Sinton, Texas plant, which is now expected to come online in September.

“When you’re tying to pinpoint where prices are going, you need to consider all of the extenuating factors,” a source said. “There have been multiple delays in new capacity. And now, with domestic prices as high as they are, we’re expecting to see a surge of imports. How will that impact things? Will Section 232 come to an end later this year?  Are we in for another hefty hurricane or winter storm season? If so, that will place additional strain on trucking and transportation. Raw materials prices, both domestically, with scrap, and globally, are also coming down, so that’s also something that everyone needs to keep an eye on.”

What market sources can agree on, however, is that these historically high prices are bound to come down, but the questions as to when the market will start to turn, and where prices will settle, have yet to be answered.

Current HDG prices are listed in the chart below.