US HDG prices still inching upward

US domestic hot dipped galvanized steel prices have continued to firm since our last report a week ago; sources close to SteelOrbis have indicated that, for the most part, “pricing is up by about $1.00 cwt. ($22/mt or $20/nt) in the past seven days.”

Current prices are “within spitting distance of where things were before the coronavirus stay-at-home orders were implemented.”

The uptick in pricing was expected due to a variety of factors. First, mills’ overall capacity utilization rates, while rising, are still “incredibly restricted.” Second, manufacturing sectors throughout the US have begun to resume operations, which has helped improve demand.

“One of our biggest customers is a HVAC manufacturer, and they were starting to hire again as of last week,” a source said. “But, we don’t know if they’re hiring to increase staff, or if they’re hiring to replace people who were laid off, who haven’t wanted to come back, because of the enhanced unemployment insurance benefits that people are getting.”

In March, the US government approved a coronavirus stimulus package that provided an extra $600 in weekly unemployment benefits. The added benefit is set to expire in July.   

“For now, we’re just keeping close tabs on the market and we’re trying to gauge where the market is going,” another source said. “We’re continuing to serve our existing customers, but what we have noticed is that attracting new business in the current environment has been extremely hard.”

This week’s domestic HDG and Galvalume spot market prices are listed in the chart below.