US HDG spot prices increase further but activity remains reserved

US domestic coated flat steel spot prices have continued to inch higher over the last week, but uncertainty over the long term trend is prevalent. Last week, a second round of price increases from US domestic flat rolled mills helped to firm up already rising domestic prices. AK Steel said Thursday that it would be raising all flats prices by a minimum of $2.00 cwt. ($44/mt or $40/nt), in addition to the late May-announced $2.50 cwt. ($55/mt or $50/nt) increase. ArcelorMittal USA was more direct and indicated that its new coated base price would be increased to $36.50 cwt. ($805/mt or $730/nt). Other mills have since issued a second increase of their own, either by official letter or through internal company memos.

Regardless, mills are united in pushing through their initial increase and not losing the momentum they gained a few weeks ago. Purchasing activity, while relatively steady in the last week, is not robust, and customers are still generally wary of whether or not the recent uptrend will sustain during the often slower summer months. For the time being, the hot dipped galvanized (HDG) and Galvalume coil price trend is pointing up and base prices have increased $1.00 cwt. ($22/mt or $20/nt) on the low end to $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill. Spot prices for corresponding extras for both products are up $0.50 cwt. ($11/mt or $10/nt) as well, but sources tell SteelOrbis that prices for Galvalume coil are trending toward the high end of the current ranges, and even slightly above in some cases.