Steel Products Prices North America
Galvalume Supplies Looking Tight in Q4
Written by Tim Triplett
August 21, 2020
Galvalume supplies are shaping up to be tight in the fourth quarter, but fears of a shortage may be overstated, sources tell Steel Market Update. Despite a recent press report to the contrary, Galvalume is one of the strongest steel sectors right now.
“There is no shortage at the right price,” said one mill executive. “Customers are busy and some have let inventories run down too far. So, some buyers are locking down tonnage during the off season so their cupboards are not empty come spring. When you get commitments for decent tons for late Q4 and you had planned on being down, it makes the market seem tight. When mills don’t roll over at a cheap price proposal with meaty tons, the customers equate that with a shortage.”
Despite the nice price run-up expected in the next 60 days, imports will not be a factor, added the steel exec. “Imports are not cheap. It would take guts to buy import for Q1 now. By Q1 this perceived shortage and any lingering production problem could be gone.”
The Galvalume supply is certainly tight and will remain that way through the rest of the year, reported one trader. “Ternium is out looking for full hard CRC to feed their lines, so they are short. The SDI #2 line in Columbus has a huge backlog of Galvalume orders and will play catchup with their contract customers and have very limited spot. SDI turned orders away for September and may do so for October. U.S. Steel is running full out at Double G, and Gary has some availability, but not much. Wheeling Nippon is out till mid-November and running strong.”
SMU’s check of the market this week puts the current price for Galvalume at $685 per ton, up $20 from late July. Galvalume bottomed at around $660 per ton in late April due to the coronavirus. The market is up but has a long way to go to regain pre-pandemic prices of $800 per ton.
Tim Triplett
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