US domestic hot dipped galvanized and Galvalume coil prices are still trending strong, sources note, adding that lengthened lead times have kept spot market prices elevated.
And while some in the market point to a robust, V-shaped recovery, others remain skeptical. “I do expect this to be a short-lived spike, and for prices to retreat once inventory is restocked,” a source noted. “At heart, when I look at overall market fundamentals, I just do not see high prices sustaining while so much capacity sits idle.”
The American Iron and Steel Institute reports that for the week ending Sept. 19, the domestic capacity utilization rate was recorded at 64.5%, against 77.4% during the same reporting period in 2019. The steel capacity utilization rate for week ending Sept. 19 also reflects a slight decline from week ending Sept. 12, when mills’ capacity utilization rate was recorded at 65.1%.
However, as it’s currently believed that domestic scrap prices will trend at sideways to up $20/gt during the October buy cycle, sources expect that US HDG prices will continue to remain strong in “at least in the short-term.”
| Product | $/cwt | $/mt | $/nt | Delivery | Weekly change |
| US domestic HDG base price | $38-$40 | $838-$882 | $760-$800 | ex-mill | up $0.50 cwt. On the bottom end |
| US domestic Galvalume base price | $38-$40 | $838-$882 | $760-$800 | ex-mill | up $0.50 cwt. On the bottom end |