US hot-dipped galvanized (HDG) pricing remained stable amid lean inventories, while cold-rolled coil (CRC) prices fell slightly due to the United Auto Workers (UAW) strike at three plants (Ford, General Motors (GM) ve Stellantis). HDG prices were flat at $860/short ton (st), while CRC prices fell by $15/st to $905/st, both on an ex-works basis.
Market participants noted limited activity as buyers wait to see what the strike will do to supply and demand. Steelmakers are expected to push prices up after the strike ends to take advantage of lean inventories, with a focus on hot-rolled coil (HRC) pricing, which is said to be approaching breakeven points for the mills. Lead times for both HDG and CRC extended to 7-8 weeks from 6-8 weeks.
US HRC prices fell over the last week as the United Auto Workers (UAW) began a strike, weighing on prices and already resulting in some steel production cuts. Tradeable price levels were reported between $660-700/st, with most on the lower end of the range. Steel mill profitability was further squeezed this week, with participants noting that prices could be approaching break-even points and motivating suppliers to attempt to set a price floor.
Lead times extended to 5-6 weeks from 4-5 weeks as most steelmakers were said to be into the end of October. Imports were broadly uncompetitive into the US due to continued price uncertainty and elevated prices keeping many domestic buyers out of the import market.
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