Two weeks ago, US domestic flats mills announced their second price increase within a month, and AMUSA set a new minimum HDG base price of $35 cwt. ($772/mt or $700/nt). Although current price points are starting to inch up to mills’ desired rate, “special deals” are still available.
“We know of at least one mill that’s offering special deals to customers. There are huge gaps between what the mills are quoting, and the discounts people are getting,” a source said. “Yes, some small buyers are paying higher prices, but anyone who has something that resembles a decent-sized order can do better.”
SteelOrbis sources say they’re continuing to monitor manufacturing outputs, as coronavirus-related stay-at-home orders are being relaxed. However, everyone says they’re keeping close watch on new infection rates and possible “hotspots,” out of concern that if the virus makes a second resurgence, that plants could be forced back into temporary closure, which would have a negative impact on demand.
“Our big concern is W-shaped recovery,” a source said. “We don’t think a V-shaped recovery is realistic, and we don’t think that a L-shaped model is realistic either. At best we can hope for a U, but a W-shaped recovery would really harm the market.”
| Product | $/cwt | $/mt | $/nt | Delivery | Weekly change |
| US domestic HDG base price | $33-$35 | $728-$772 | $660-$700 | ex-mill | up $1.00 cwt. |
| US domestic Galvalume base price | $33-$35 | $728-$772 | $660-$700 | ex-mill | up $1.00 cwt. |
| 0.019x41.5625 Gr80/AZ55 | $43-$45 | $948-$992 | $860-$900 | ex-mill | up $1.00 cwt. |
This week’s domestic HDG and Galvalume spot market prices are listed in the chart below.