As of July 2024, the price of galvanized steel coil in the U.S. is around $54 per hundredweight (cwt), equivalent to $1,080 per short ton or approximately $0.54 per pound. This represents a significant increase due to rising demand and limited supply. Here are more details on the factors affecting the price:
- Demand and Supply Dynamics:
- High Demand: Increased demand from the automotive and construction sectors has driven up prices. Galvanized steel is favored in these industries due to its anti-corrosive properties and durability.
- Limited Supply: Supply constraints are exacerbated by production slowdowns at steel mills, partly due to COVID-19 outbreaks and operational delays. This has led to longer lead times and limited availability of spot material.
- Price Trends:
- Price Increases: Over the past several months, the price of galvanized steel has risen consistently. The price per cwt has increased by approximately 74.19% from mid-August 2023 to December 2023.
- Current Prices: The price for hot-dipped galvanized coil is around $54 per cwt. This reflects a significant surge compared to earlier in the year.
- Market Conditions:
- Spot Market Tightness: Many buyers report difficulties in securing spot material. Mills are prioritizing contract customers, leaving limited volumes for spot purchases.
- Buyer Sentiment: There is considerable frustration among buyers due to the scarcity of material and the uncertainty of future supply. Some anticipate that availability may not improve until several months into 2024.
- Geopolitical and Economic Factors:
- Global Events: The ongoing impacts of the COVID-19 pandemic and geopolitical tensions, such as the war in Ukraine, have contributed to market volatility and price fluctuations. These factors affect both supply chains and production capacities.
For the most accurate and current pricing, industry professionals often rely on platforms like Steel Market Update and Fastmarkets, which provide detailed and up-to-date information on steel prices and market trends.
