US hot-dipped galvanized sheet steel prices continue to soften, despite efforts by some US producers to hold offers at higher announced pricing, sources said Monday.
US mills in mid-October announced a price increase on sheet steel products, however, it has been difficult for the increase to gain any lasting momentum in the galvanized market, sources said.
"I continue to see [galvanized] prices drifting," a service center source said. The offers he has received for galvanized substrate fell about $10/st over the course of the past week, he said.
On Monday, the Platts TSI assessment of 16-gauge HDG sheet with G90 coating at $860.50/st, down $19.50 week on week.
A US mill reported a large volume transaction at $906/st, including zinc coating extras, however, another mill reported its transactions were in the range of $850-$860/st over the course of the past week. A service center source reported buying 250 st of HDG at $866/st, including zinc coating extras, last week.
A third service center source said it seems that mill order books for galvanized sheet are a little soft at the moment. Offer prices remain in a wide range, depending on the producer, he said.
Despite lower HDG import levels, buy-side sources said they saw domestic pricing struggling to move up, in part, as a result of additional US capacity, with Big River Steel starting up this year and other US producers expanding their capacity.
"I think there's a lot more domestic capacity and I think that's being felt," the third service center source said.
Slightly lower pricing was also heard for hot-rolled coil and cold-rolled coil. The daily Platts TSI CRC assessment was $792.50/st, while the daily Platts TSI HRC assessment was $610.25/st. The assessments fell $4.25 and $2.25, respectively, compared with Friday.
HRC pricing still continues to be firmer than that for CRC and galvanized sheet, sources said. Two service center sources reported current pricing in the range of $600-$610/st Monday, however, some offers remain at $620, they said.
There was talk in the market Monday that US mills may look to issue another price increase on sheet products in the next week or two.
"The mills are certainly talking about higher pricing, but I think it seems a little premature," the first service center source said.
Another price increase is more likely to have success once mill lead times extend into the first quarter, the second service center source said.
"Everybody is talking about prices going up, but talk and action are two separate things," he said. "Q1 is historically a good quarter so I think everyone is assuming that's when the mills will really look to raise prices."
