US HDG price increases pick up steam

Spot market prices for US domestic HDG and Galvalume have continued to firm since our last report a week ago, and market sources say that it appears the increases are picking up steam. For example, while increases closer to the first of the year were tracking at $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) per week, recent base-price HDG increases have experienced larger jumps.

And while it’s been heard that President Joe Biden is weighing whether to repeal Section 232 tariffs, which would remove the 25% tariff on imported steel and allow traders to bring in more favorably priced imports, the American Iron and Steel Institute is urging against such a move, stating that eliminating the steel tariffs now would undermine the viability of the American steel industry.

Data, however, suggests that in 2020, the US imported 30% less steel than what was brought in 2018, and while AISI notes that this week’s capacity utilization rate has climbed to 79.2%, sources close to SteelOrbis note that lead times are still long and that spot tons are hard to come by. At current, lead times for HDG are trending at 11+ weeks for HDG, and at more than 12 weeks for Galvalume coil.

This week’s prices are listed in the chart below.