US HDG prices stable but uncertain

In the last week, US domestic coated flat rolled steel spot prices have firmed, although there appears to be some pricing flexibility for certain products. US domestic flat rolled mills have not been willing to compromise on price gains they have made following four rounds of price increases. The latest increase for $1.00-$1.25 cwt. ($22-$28/mt or $20-$25/nt) hasn't been fully absorbed into spot market prices, but it continues to keep prices firm. Since last week, HDG and Galvalume coil prices have all increased by about $0.50 cwt. ($11/mt or $10/nt) amid steady activity and extended lead times, which remain in late September.

However, SteelOrbis sources report a bit more wiggle room on HDG coil prices than for Galvalume coil. End use demand is steady but not strong enough for buyers to buy beyond their short-term needs. Further, there are some growing concerns about import arrivals in the fall. Although HDG import volumes arriving aren't anticipated to be substantial, they will likely be higher than in previous months, and could put pressure on US domestic spot prices. However, with busheling scrap prices going sideways this month, US domestic spot prices are anticipated to hold steady for at least the next few weeks.