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

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October 2017 | Galvanized Steel and Tinplate Market Tracker


US HDG base prices tumble: American Market Highlights


While the most recent Commerce Department import license data indicates that US HDG import volumes were down 15.2% month on month and 2.5% year on year in September, we have heard that import inquiries have recently picked up again.

Over the past month the US HDG market has caved to strong downward pricing pressure, moving domestic spot base prices back to $790-$800/short ton, which is essentially where they had been prior to the last 2-3 rounds of price hikes, from $810-$840/ton a month ago. MBR believes that the market is close to finding a floor, particularly following the announcements from ArcelorMittal and Nucor that they are increasing their list prices by some $40-45/ton, although some slight additional slippage is possible in the next few weeks. Some high volume deals are already being done as low as $770-$780/ton.

We believe that this weakness is mostly a supply- and cost-side phenomenon, given that underlying HDG demand remains largely solid. In fact, the Institute for Supply Management’s manufacturing purchasing managers index moved up to 60.8% in September, its highest reading since May 2004. The biggest...

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