Will the US HDG price hike gain traction?

Toward the end of the third week of February, rumors of a possible flat rolled steel price increase began to permeate the market. And while some wondered whether mills would delay an announcement until after March’s scrap buy cycle concluded, mills chose to announce beforehand. The price increase letters state that prices for all flat rolled steel products, including US domestic HDG / Galvalume coil, would be raised by $2.00 cwt. ($44/mt or $40/nt), effective with all new orders.

“The January price increase was essentially a bust,” one source said, adding that only the smallest buyers who were wanting to book the smallest tonnages felt an impact. “As for whether this one moves the needle, it’s just too soon to tell.”

Extending lead times and the expectation of firmed scrap prices in March, could support higher finished steel prices. On the other, sources note that oversupply is still a problem.
For now, prices remain stable.

This week’s price ranges for coated steel products are listed in the chart below.