US Galvanized Plain Sheet Prices Show Bullish Trend Amidst Supply Disruption

In the third week of November 2023, the price of the Galvanized Plain Sheet showed a rising trend in the US spot market as the supply tightened in domestic warehouses. The demand from the downstream automotive and construction sectors remains at a firm rate. The United Auto Workers (UAW) plans to resolve the dispute with the big three as it approves the deals offered by Stellantis and Ford. In their latest assembly, officials from the US Federal Reserve indicated a lack of interest in reducing interest rates in the near future, especially considering that inflation is significantly exceeding their target. This would attract more consumers as the Galvanized Plain Sheet market shows a firm rising trend.

The inventory level for the Galvanized Plain Sheet remains on a downward trend as the prices get high; the local steelmakers still intend to close the manufacturing activity at the old plants in the US spot market. United States Steel Corp. and Cleveland-Cliffs Inc., major manufacturers of Galvanized Plain Sheets, plan to keep the seven million tons of production capacity out of service. The board members of these two companies are taking this step as the other manufacturers are building new mills and installing new state-of-the-art facilities for the production of steel products, including a Galvanized Plain Sheet. The continuation of the old mills with outdated equipment would be a major challenge as the input cost would be much higher in comparison to its yield. This has led to a limited supply of Galvanized Plain Sheets in the US spot market.

Moreover, the demand for Galvanized Plain Sheets from the downstream automotive industries remained at a higher edge as the UAW approved the deal offered by the auto manufacturing giants Stellantis and Ford. The new four-and-a-half-year contract ensures a 25% increase in payment along with the restoration of the cost of living and full payment for all the workers who were on strike. Additionally, the consumption of Galvanized Plain Sheets from the construction and infrastructural development sector also shifted northwards as the Housing permits and single-family house construction started to increase in the middle of the last quarter.

According to ChemAnalyst, the price of the Galvanized Plain Sheet will remain on a higher edge for the upcoming weeks as the demand from the downstream auto and construction industries will increase in the upcoming weeks. Meanwhile, the shortage in production and supply of Galvanized Plain sheets will push the mill prices high in the US steel market. The US Federal Reserve also showed no signs of increasing its interest rate in the latest meeting of US government officials.