US domestic hot-dip galvanized sheet steel prices edged down in early July and then recovered following a round of price hikes mid-month.
Based on market feedback, S&P Global Platts narrowed its monthly assessment of heavy gauge galvanized sheet with G90 coating to $870-$900/st, from $860-$900/st.
Though mills have been quoting base pricing as high as $840/st, most market sources said they were able to buy at lower prices.
One service center source said that while three mills were quoting him $840/st, he could buy from another domestic supplier at $800/st. Another service center source said he could buy at a $790/st base price, noting that even though mills were asking for more, pricing remained under pressure. A third service center source saw the full range of galvanized sheet base pricing at $785-$820/st. A fourth service center source was quoted $800/st. A fifth service center source said his buying price was largely unchanged heading into August and remained in the $760-$780/st range.
Mills said they were quoting $820-$840/st range, and a trader said he was selling at $810/st without any pushback from buyers.
Even though most domestic mills announced $25/st price increases in mid-July, high import volumes, slowed auto demand and uncertainty surrounding the federal Section 232 investigation kept buyers on the sidelines.
President Trump said on July 25 that the Section 232 decision would be delayed, and traders that were only selling small quantities of imports started probing the market for interest.
One trader said his booking volumes in the last two months were down to about a third of his usual business, and in that time, prices have jumped. "The pricing existing 60-75 days ago has changed because the world price in flat roll products is up significantly," he said.
Three sell-side sources said quotes for imported heavy gauge sheet with G90 coating were in the $800-$855/st range on a loaded truck basis. One seller said he would quote $820/st for that product, but he saw competitive pricing as low as $780/st on a loaded truck basis.
"Prices have been going up because hot roll prices have been going up offshore," another trader said. "I don't see any sign that Chinese or Russian hot rolled is going down."
Some foreign mills were also unwilling to match the lowest prices in the market because they are worried about being the target of an antidumping investigation.
Even though galvanized sheet prices were up internationally on higher costs, the trader said buyers were still nervous about purchases.
Based on market feedback, the Platts monthly imported galvanized sheet assessment rose to $750-$780/st CFR Gulf port, up from $720-$740/st.
