US HDG prices rise for second consecutive week

Two price increases from virtually all US flats mills and a major increase in scrap prices in August are helping boost US domestic hot dipped galvanized (HDG) and Galvalume coil spot prices. Prices have been gradually trending upward over the past few weeks, and mills have been increasingly pushing for higher prices. HDG base spot prices have made the largest gain since last week, and are now in the wider range of $37.00-$39.00 cwt. ($816-$860/mt or $740-$780/nt) ex-Midwest mill. According to SteelOrbis sources, larger buyers are still able to book at the lower end of the range, but now that mills are actively quoting $39.00 cwt. on new orders, smaller buyers have been forced to pay higher prices.

Consequently, spot prices for HDG 0.012"x40.875" G30 and HDG 0.019"x48" G90 are also on the rise, increasing $1.00 cwt. ($22/mt or $20/nt) over the past week to $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$960/nt). However, although prices are on an uptrend, many buyers are still unwilling to take possession of excess material and stock inventories. In addition to an increase in scrap prices, uncertainty over supply due to negotiations between two major US steelmakers and the USW union is helping to drive prices higher, as demand levels remain flat to down due to a summer slowdown. Industry sources remain uncertain of how long prices will hold firm once the possibility of a strike is no longer impacting buying patterns.