US HDG/CRC: Mills get higher HDG prices

US steelmakers were able to secure higher hot-dipped galvanized (HDG) coil pricing this week as supply tightened further.

The Argus weekly US HDG price rose by $30/short ton (st) to $1,150/st, the seventh consecutive week of increases.

A steelmaker was able to secure pricing at that level for a few hundred tons, with repeatable offers at $1,150/st supporting the higher price.

Some steelmakers with limited availability through January have posted minimum HDG prices of $1,200/st, but no one reported securing at those levels. One southern mill said they have limited availability until March for HDG and cold rolled coil (CRC).

HDG lead times jumped to 11 weeks from 9.5 weeks in the prior week, showing the tightness in supply. Some buyers have noted that the share of the galvanized market has spread to more steelmakers, tightening up their books for the beginning of the year as they work to add the additional tons that they have taken from other steel companies.

Increased HDG import purchasing has been reported, which could come in February or March. That made at least one service center call the back half of the first quarter a "warning yellow light" as the influx in coated material could weigh on the market.

CRC prices were flat at $1,100/st amid limited activity in the market after steelmakers have pushed for prices of $1,150-1,200/st. One steelmaker is aiming for a minimum price of $1,250/st but has not received it yet.

Cold rolled lead times jumped to 11 weeks from 9.1 weeks, sticking with coated products.