Higher US domestic scrap prices for June coupled with collective attempts by US flats mills to put an end to the flat-rolled price slide may lend stability to the US hot dipped galvanized (HDG) market.
Since mill price announcements in the last two weeks, the US domestic market for coated flat steel products has been active; mills have seen stronger order activity than they had throughout most of April and May as service centers replenish depleted inventories. Domestic mill efforts to create a floor price on flat-rolled steel products have had no effect on flats pricing just yet though, and HDG spot prices have edged down again in the last week.
However, busheling scrap prices for June increased about $20/lt in the US Midwest and are up approximately $10-$15/lt on the East Coast, providing "some backbone behind the already-announced increases" according to one Midwest service center. Higher scrap prices may also be just the push the HDG market needed to finally end the rapid decreases that the HDG market has been experiencing since early April.
But for now, while the lower ends of our ranges are, for the most part, intact compared to last week, HDG and Galvalume base spot prices have fallen $1.00 cwt. ($22/mt or $20/nt) on the high end to $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) ex-Midwest mill. The high end on HDG 0.019"x48"G90 and Galvalume 0.019x41.5625 Gr80/AZ55 ex-Midwest mill spot prices declined by a similar margin, while HDG 0.012"x40.875" G30 spot prices are down $1.00 cwt. to $52.00-$54.00 cwt. ($1,146-$1,190/mt or $1,040-$1,080/nt) ex-Midwest mill due to more import of the product being booked, primarily with Indian mills. Sources tell SteelOrbis that US domestic mills have been cutting the extras more drastically recently to be more competitive with import offers.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $43-$44 | $948-$970 | $860-$880 | ↓$1.00 cwt. on high end |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $52-$54 | $1,146-$1,190 | $1,040-$1,080 | ↓$1.00 cwt. |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | ↓$1.00 cwt. on high end |
| Galvalume | ||||
| ex-Midwest mill | $43-$44 | $948-$970 | $860-$880 | ↓$1.00 cwt. high end |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | ↓$1.00 cwt. high end |
Current Indian HDG 0.012"x40.875" G30 are approximately $50.00-$51.00 cwt. ($1,102-$1,124/mt or $1,000-$1,020) DDP loaded truck in US Gulf ports with Chinese offers $1.00 cwt. below, but futures interest is still light in the flat-rolled market as a whole. Even Chinese HDG 0.019"x48" G90 offer prices, about $4.00 cwt. ($88/mt or $80/nt) below US domestic spot prices, are stirring little interest.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $50-$51 | $1,102-$1,124 | $1,000-$1,020 | ↓$1.00 cwt. on low end |
| China* | $49-$50 | $1,080-$1,102 | $980-$1,000 | ↓ $0.50 cwt. |
| Mexico | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $49.50-$50.50 | $1,091-$1,113 | $990-$1,010 | neutral |
| India* | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | ↓ $1.00 cwt. |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| India* | $53-$54 | $1,168-$1,190 | $1,060-$1,080 | ↑ $1.00 cwt. |
| Taiwan* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| Mexico** | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
**DDP loaded truck delivered into Houston