US HDG/CRC: Tight supply leads prices higher

US hot-dipped galvanized (HDG) coil and cold-rolled coil (CRC) prices continued rising this week as lead times remained extended.

The Argus weekly US HDG and CRC prices increased by $50/short ton (st) to $1,050/st ex-works.

Repeatable HDG price offers were from $1,020-1,080/st, with one service center reporting being offered 300st of material at $1,020/st late last week. Steel mills have attempted to push offer prices to a range of $1,100-1,150/st, though no one reported paying those prices. Buyers expect to be held to those levels by mills if they need spot tons.

Galvanized lead times stalled in the last week with lead times falling by a week to 9.5 weeks from 10.5 weeks, with mills not booking out January tons yet. The lower lead times do not indicate flagging confidence in the market.

One of the primary pushes for higher prices is that the United Auto Workers (UAW) strike against the Big 3 US automakers Ford, General Motors (GM) and Stellantis may be nearing an end. The union now has tentative agreements with all three of the auto companies, though its membership still needs to vote on whether or not to approve the agreements.

The first tentative agreement between the UAW and Ford last week helped kick off US Steel's round of price increases to $900/st on HRC and $1,150/st on cold-rolled coil and hot dipped galvanized coil products.

Repeatable CRC pricing was between $1,000-1,100/st, with mills also attempting to push pricing up to the $1,100-1,150/st range.

Cold rolled lead times also stalled and fell by a week to 9.5 weeks.