Hot-dip galvanized (HDG) coil prices in the United States have reclaimed a premium over cold-rolled coil (CRC) prices for the first time since January. US HDG ex-works now stands at $880 per short ton, representing a $20 per short ton premium compared to CRC prices. This shift is primarily driven by a tightening supply situation.
In addition several planned maintenance outages at steelmakers led to lower HDG supplies, resulting in lead times extending to 8.5 weeks, reaching a seven-month high. In contrast, CRC lead times have slightly decreased to 8.4 weeks week by week.
The demand for HDG products has seen an uptick, and there are reports suggesting that supply constraints may persist throughout the remainder of 2023. Notably, the lead time gap between hot-rolled coil (HRC) and HDG is now the narrowest it has been since August 1st.
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