US HDG spot prices begin easing lower

After weeks of stability, the US domestic coated flat steel market's trend is now pointing downward, with price declines expected over the next week. While flats mills' two announced increases in the past month had dried up some of the deepest deals heard throughout February and early March, spot prices stayed neutral. But over the past few days, price cuts have once again cropped up--coating extras are being selectively cut and some mills have even offered freight absorption in an attempt to fill anemic order books.

For now, the ranges for hot dipped galvanized (HDG) and Galvalume spots are unchanged, but sources tell SteelOrbis that a large order is no longer necessary to garner the lower end and prices are trending toward the bottom of the range. And in the case of HDG 0.012"x40.875" G30, activity under $48.00-$50.00 cwt. ($1,058-$1,102/mt or $960-$1,000/nt) ex-Midwest mill is already spreading. With US raw steel production increasing a total of 5.4 percent over the last three weeks, and last week reaching the highest level seen all year, most buyers continue to delay purchases due to expectations that prices will likely soften further by the end of the month.