US hot-dipped galvanized steel prices dropped slightly Tuesday, but have remained within the $845-$860/st range during the last five weeks amid stabilizing indications.

The weekly Platts TSI US HDG index dropped $2.50 over the week to $856.75/st, which includes a G90 coating weight extra. The extra is estimated at approximately $70/st based on gauge specifications.

A mini-mill source was offering HDG base at $820/st, and thought it was “promising” that it was easier for them to move material at such price levels.

A service-center source also indicated that that the market for HDG base was at $820/st for late March delivery, but he was also very cautious about the demand.

“Business still seems quite slow, but the mills claim to be busy. The last increase has stopped the sliding, but I can’t see them going any further up until we see manufacturing pick up which has not happened yet,” added the source.

Meanwhile, another service center source booked 500 st HDG base at $790/st from a mini-mill in the South.

Despite steady activity levels at the beginning of the year, the spot activity was fading as service centers’ current contracts were satisfactory to meet spot demand, according to a third service-center source.

This source indicated the tradable value at HDG base at $780/st. He was still optimistic about the first half of the year. The demand has been steady at construction as the mild weather had also helped a lot so far, according to the source.

Mills have been trying to maintain a $200 HDG base-HRC spread since the first price hike. Meanwhile, HDG base-HRC spread narrowed down by $2.75 over the week to have stood at $183.75/st Tuesday.

The combined S&P Global Platts TSI price index uses a volume-weighted average calculation —- according to TSI's standard -— to determine value on an ex-works Indiana basis.


-- Ali Oktay

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