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Possible shortages of light gauge galvanized

I am hearing that there may be a shortage of light gauge galvanized/Galvalume during the July time frame. I am aware of a Chinese galvanizing line that is experiencing problems that may cause it to not ship approximately 15,000 tons of light gauge galvanized meant for the U.S. market.

I am also hearing ArcelorMittal may be having some issues – especially working through the changes necessary with the sale of Sparrows Point and the supply of material to the Double G coating facility in Jackson, Mississippi.

Source :

At the same time I am hearing from HVAC suppliers that inventories are tight at the moment but there is a concern a combination of hedge buying by end users coupled with continued buying of allocated tons by both the service centers and wholesalers may cause a surge in supply during the month of July. I would appreciate any information that you would like to share regarding your particular situation and what you are seeing and hearing from your customers/suppliers.

Scrap – SDI bought another scrap supplier within the past few days. Nucor has been buying up sources as well.

This is something steel buyers need to be aware of and to watch as it can go two ways

1) control of the sources guarantees the mini-mills ample scrap now and into the future.

2) Control of the sources of steel scrap can artificially keep the price of scrap high – thus hurting the buyers of steel products – and pumping up the bottom line of the mills in control of scrap.

Steel Prices – SDI (June), USS (July), Nucor (July), ArcelorMittal (July), Severstal – especially Sparrows Point (July) and the conversion mills – The Techs, Sharon Coatings, CSN and Wheeling Nisshin should all be coming out with prices either yet this week or, if they want to be nice to me because I’m on vacation, by early next week. Please send me an email or a call when you get the news.

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