US HDG/CRC: Mills push prices, lead times up

US hot-dipped galvanized (HDG) coil and cold rolled coil (CRC) prices both jumped this week along with rapidly extending lead times and tight supply.

The Argus weekly US HDG price jumped by $70/short ton (st) to $1,000/st while the CRC price jumped by $80/st to $1,000/st ex-works.

Repeatable HDG price offers were at $1,000/st, where steel mills have pushed minimum prices and one reported selling. Some buyers reported offers as high as $1,050/st.

Galvanized supply tightened significantly in the last week with lead times jumping to 10.5 weeks from 8.1 weeks, with the market reporting that 2023 spot tons were no longer available.

This lack of supply comes despite the growing strikes by the United Auto Workers (UAW) against Ford, General Motors (GM) and Stellantis. Automotive manufacturing consumes large amounts of galvanized flat steel, and the UAW in recent days added Stellantis' Sterling Heights, Michigan fullsize pickup truck plant and GM's Arlington, Texas fullsize SUV plant. It is unclear how those strikes will impact steel demand.

A market source reported that construction demand has remained steady.

Repeatable CRC offers also rose this week to $1,000/st, with a mill reporting selling at $1,000/st.

CRC lead times also jumped to 10.5 weeks from 7.2 weeks, with supply also seemingly nonexistent for the rest of the year.