US domestic HDG prices have endured another downward revision. Current price points, sources note, have dropped by approximately $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago.
“It’s nothing short of amazing how robust things were in the first and second quarter of the year, compared to the total mess we’re dealing with today,” a source said. “There’s just too much capacity.”
US HDG prices peaked in mid-April 2019, at approximately $43 cwt. ($948/mt or $860/nt) ex-mill before plunging to $33 cwt. ($728/mt or $660/nt) ex-mill in late June of this year. While mill price announcements followed and temporarily lifted prices, the overall downtrend has continued, and current price points are expected to revise downward in October after US scrap prices settle.
As US domestic scrap is expected to trade at price points lower than initially suspected, some believe the HDG market could correct by an additional $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) before leveling.
Product | $/cwt | $/mt | $/nt | Delivery | Weekly change |
US domestic HDG base price | $35-$36 | $772-$794 | $700-$720 | ex-mill | down $1.00 cwt. |
US domestic Galvalume base price | $35-$36 | $772-$794 | $700-$720 | ex-mill | down $1.00 cwt. |
0.019x41.5625 Gr80/AZ55 | $45-$46 | $992-$1,014 | $900-$920 | ex-mill | down $1.00 cwt. |