Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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August 2016 | Galvanized Steel and Tinplate Market Tracker


US HDG market succumbs to downward pricing pressure: American Market Highlights


Even with LME zinc prices jumping up 60-65% since early 2016 to $2,280/tonne, mills haven’t increased their coating adders.

A combination of global and domestic economic uncertainty, weakening scrap prices, and aggressive import offers have weighed heavy on domestic mills, who, despite efforts to the contrary, haven’t been able to keep HDG prices from falling. Already, US spot base prices have eased downward to $800-$830/short ton from $820-$840/ton a month ago and MBR believes that they could fall another $10-$20/ton before reaching a level where they will likely be sustained for the balance of the year.

Meanwhile, even with LME zinc prices jumping up 60-65% since early 2016 to $2,280/tonne, mills haven’t increased their coating adders. In fact, some are reportedly lowering or even waiving some of the adders in an effort to limit HDG base price declines.

This comes as domestic mills are no longer on controlled order entry and are seeing their lead times come...

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