The galvanized plain sheet (HDG) market is currently navigating through a landscape characterized by mixed trends in both the USA and Germany, influenced by varying lead times, pricing dynamics, and shifting demand patterns.

In the USA, buyers of HDG products have recently reported a slight contraction in mill lead times, reversing the increases seen in early December. This decline in lead times reflects stable production conditions, as the market adjusts to fluctuating demand. Despite the relatively consistent lead times for hot-rolled coil (HRC)—the primary feedstock for HDG—the willingness of mills to negotiate on spot pricing has diminished somewhat compared to previous weeks. HDG price negotiations have remained active throughout 2024, highlighting the market’s responsiveness to changes in demand and supply.

On the pricing front, data indicate that HDG prices in the USA decreased by 0.4% in the week ending December 20 and again by 0.4% in the week ending December 27. This downward movement underscores the cautious market environment as buyers remain focused on destocking ahead of the year-end, contributing to limited trading activities. Furthermore, conflict exists between service centers and producers, where the former seek lower prices while manufacturers are inclined to push for higher prices amidst ongoing market pressures.

In Germany, the landscape for HDG mirrors that of the USA, with prices also decreasing by 0.4% on the week ending December 27. Producers in Germany and Southern Europe have been striving to increase prices; however, stagnant market conditions and unchanged contract prices since mid-November have made these efforts challenging. Reports indicate that there has been minimal movement in the market, with many waiting for the last active day before the holiday season.

Importantly, service centers across Europe are hesitant to explore imported HDG options due to competitive domestic prices and concerns related to tariffs and extended lead times. This sentiment contributes to the overall stagnation in the market, as many buyers are focused on waiting for potential price adjustments before proceeding with new orders. Additionally, the automotive sector, a significant consumer of HDG products, has experienced a notable decline in sales during the fourth quarter, further affecting demand.

While the underlying dynamics of the HDG market remain affected by fluctuating lead times and negotiation rates, producers like Cleveland-Cliffs have announced price increases for hot-rolled coil, which serves as a vital feedstock for HDG production. This strategy underscores their expectations of improved order flows despite the overarching cautious market sentiment.

As the market continues to evolve, industry experts anticipate that demand for HDG products will remain subdued in the near term. As per ChemAnalyst, the HDG market is expected to experience further price stabilization, with potential increases contingent on improvements in downstream demand and the broader economic landscape. The combination of ongoing negotiations, changing feedstock prices, and varying lead times will play a critical role in shaping the future pricing and availability of galvanized plain sheets, impacting producers and consumers alike in both the USA and Germany.