US hot-dipped galvanized (HDG) and cold-rolled coil (CRC) prices fell due to market uncertainty. HDG prices dropped by $60/st to $860/short ton, while CRC prices fell by $30/st to $920/st, both on an ex-works basis. Hot rolled coil (HRC) ex-works prices dropped by $30/st this week to $690/st in the Midwest and south.
The drop in galvanized pricing came as supply remained plentiful in most places. Some buyers expect prices to increase in the near future as mill outages tighten supply somewhat. HDG pricing was reported in a repeatable range between $845-880/st, with many requiring lower prices to consider buying. A wildcard is the potential impact of a strike by the United Auto Workers (UAW) union against Ford, General Motors, or Stellantis. A strike could begin this week and leave a lot of galvanizing lines empty, potentially causing further pressure on prices.
CRC remains the premium product in the light gauge flat market, maintaining a significant spread to HDG. Tighter relatively supply has maintained this premium, and repeatable offers were reported between $900-950/st. US HDG mill lead time lengthened to 6-8 weeks from 5-7 weeks, while CRC lead times also lengthened to 6-8 weeks from 4-7 weeks.
US HRC prices dropped further on Tuesday against a backdrop of uncertain demand with a possible strike at three major US automakers looming later this week. US HRC Midwest and southern assessments both fell by $30/st to $690/st ex-works, the lowest since the start of 2023 and down by 43pc from the April peak. Large discounts were reported for a range of potential tonnages from 2,000-20,000st.
The biggest impact to steel consumption would likely come in the Midwest, where most affected auto plans are located. Lower domestic offers weighed on pricing, with repeatable levels between $1,460-1,520/st.
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