US HDG/CRC: Prices rise, supply tight

US hot-dipped galvanized (HDG) coil and cold rolled coil (CRC) prices rose as supply remained tight.

The Argus weekly US HDG price rose by $40/short ton (st) to $920/st while the CRC price increased by $20/st to $880/st ex-works. The price increases are the largest since early-July.

Repeatable HDG price offers rose to $900-950/st, with mills pushing prices up to higher levels.

Extending lead times are assisting the mills, with lead times extending to 9.4 weeks from 8.5 weeks. Some producers are reporting limited availability through the rest of 2023, but order books can loosen over the next few months after contract tons are booked. The tightened HDG supply has also allowed the product to remain at a premium to CRC for a second consecutive week.

The long lead times and tight supply is a stark change from just a few weeks ago, with lead times below 8 weeks from mid-April through mid-September.

Repeatable CRC offers range of $880-920/st, with a mill reporting selling at $916/st. Demand was more limited than for HDG, leading to the lower price levels, but mills had also pushed lead times out for CRC, indicating tighter supply.

CRC lead times also moved out to 9.7 weeks from 8.4 weeks.