Last week, US domestic flat rolled steel mills announced they would be raising prices on all flat rolled steel products by a minimum of $2.00 cwt. ($44/mt or $40/nt), effective with all new orders. Prices for US domestic hot dipped galvanized coil, however, have remained stable.
Lead times and order activity are still unchanged, sources note, adding that there is a strong belief that the increase was more about preventing prices from slipping lower. Many also believe that prices may not inch upward in the absence of a significant market event, such as a mill strike.
The question as to whether steelworkers will move forward with a labor strike has yet to be answered. On Friday, United Steelworkers (USW) issued a notice from the negotiating committee, indicating that despite their best efforts to reach a deal with ArcelorMittal USA, a strike may be necessary, especially since the mill is “once again very profitable.”
“Steelworkers at ArcelorMittal and across the US domestic industry have lived without wage increases for the past three years, with a total wage increase of only 4.5 percent since 2012. Inflation has run about 8 percent during that period, while the average increases of all other private sector workers have risen by almost 15 percent, according to the Bureau of Labor Statistics.”
The union also said they also take issue with the mill’s demands for “concessions in active and retiree health care, pensions” along with a wide range of other negotiating points.
Sources believe that if the strike moves forward, this would likely push domestic HDG prices up, “at least in the short term.”
The current average spot market price transaction range is listed below.
Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
US domestic HDG base price | $46-$48 | $1,014-$1,158 | $920-$960 | neutral |
US domestic Galvalume base price | ||||
ex-Midwest mill | $46-$48 | $1,014-$1,158 | $920-$960 | neutral |
0.019x41.5625 Gr80/AZ55 | ||||
ex-Midwest mill | $56-$58 | $1,235-$1,279 | $1,120-$1,160 | neutral |