US HDG/CRC: HDG firms as CRC slips

US hot-dipped galvanized (HDG) pricing remained flat amid lean inventories and cold-rolled coil (CRC) prices fell slightly as US autoworkers went on strike at three plants last week.

The Argus weekly US HDG price was flat at $860/short ton (st) while the CRC price fell by $15/st to $905/st, both on an ex-works basis.

HDG pricing was firm this week despite demand uncertainty as the United Auto Workers (UAW) strike hit three automotive plants, one each in the US at Ford, General Motors (GM) and Stellantis. A fourth facility, GM's Fairfax, Kansas, sedan and SUV plant could be idled by the a lack of parts from the UAW-struck Wentzville, Missouri plant. The strike may expand in its scope on Friday.

Market participants noted limited activity in the market as buyers wait to see what the strike will do to supply and demand.

The strike may lead to an increased availability in galvanizing line capacity, potentially adding further downward pressure on pricing as steelmakers try to find ways to keep their value-added lines running amid lower automotive demand.

Steelmakers are expected to push prices up after the strike ends to take advantage of lean inventories. While the push is expected on all products, a lot of focus is on hot-rolled coil (HRC) pricing, which at $670/st is said to be approaching breakeven points for the mills.

Both HDG and CRC lead times extended to 7-8 weeks from 6-8 weeks.