October 2008 | Galvanized Steel and Tinplate Market Tracker
Largest HDG price decline since at least 1999: American Market Highlights
Coated coil prices in the USA fell in an almost unprecedented manner between September and October.
Coated coil prices in the USA fell in an almost unprecedented manner between September and October. A look back at historic pricing data shows that HDG coil prices have suffered their largest month-on-month decline since at least 1999 (see right-hand chart below). Anecdotal evidence suggests that further declines are likely to occur before the end of the year. Demand for HDG is weak, worse still than for other flat products, and buyers are not placing orders for the time being.
...as buyers retreat away from the market
MBR believes, however, that a number of differences separate the situation today from that of 2001 and 2004, when prices also slumped significantly. Overall, steel inventories are still lower than they were prior to large price drops that have occurred in the recent past. Moreover, US mills have shown a certain amount of production restraint so far this year, and US coated steel...
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