February 2015 | Galvanized Steel and Tinplate Market Tracker
Pricing floor still eludes US HDG market: American Market Highlights
While we expected that ferrous scrap prices would decline in February, which is somewhat unusual in the winter months, the magnitude of the decline is far greater than we had expected.
Hot-dipped galvanized (HDG) prices are continuing to plummet and are very likely to fall further in the coming weeks thanks to larger than expected declines in iron ore and ferrous scrap costs, high imported steel volumes and bloated service centre inventories. January, average base prices tumbled by $30-$40/short ton to $690-$700/ton, with some deals being cut at even lower numbers as low as $660/ton. It is at this level, where they are today, $60/ton down month-on-month. And the bottom has not been reached yet. MBR believes that prices could fall an additional $20-$30/ton before all is said and done.
Price levels are similar across central and south America. MBR understands that Mexican HDG is selling at approximately $680/ton delivered, while Brazilian HDG is priced at about about $580/ton for export, having benefited from a weakening of the Brazilian Real against the...
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