UAW Strike Threats and Power Outages Impact US Hot Dipped Galvanized Sheets Prices

In the third week of September, the price of Hot Dipped Galvanized Sheets dampened in the US spot market as the ongoing tendency of Union Auto Workers to go on a strike jeopardized the local steel manufacturing industries. The inventory level for Hot Dipped Galvanized Sheets remains on a higher edge, keeping the prices low, as the consumption rate was slower due to uncertain economic conditions. The demand from the downstream automotive industries also plummets across the USA as the sales and market outlook experience pessimistic trends. Domestic manufacturers have expected a recovery of prices for Hot Dipped Galvanized Sheets as power outages in major industries would lower the inventory levels.

The US region experienced a downward price trend for Hot Dipped Galvanized Sheets in September, despite market players having previously anticipated growth in price as the summer holiday ends. This happened due to the previously oversupplied stock from local and overseas manufacturers. During the last week of August, the mills announced the rise in price of Hot Dipped Galvanized Sheets across the USA. Furthermore, the steel mills are trying to tighten their supply, which could lead to an increase in purchase rate and placement of orders for Hot Dipped Galvanized Sheets in the US spot market. Lowering the supply rate is expected to have a positive effect as the major industries will face power outages in the forthcoming weeks amid harsh weather conditions. These factors could help recover prices for Hot Dipped Galvanized Sheets across the US spot market in the coming weeks.

Meanwhile, the strike by the Union Auto Workers in the USA has imposed a major threat to the US steel industries. The UAW has issued a deadline of 14 September to acknowledge their proposal concerning payment hikes to improve and protect all UAW members' wages, health care, pensions, work hours, and work conditions. The strike against the three major auto-manufacturing industries – General Motors, Ford, and Stellantis has lowered the consumption rate of Hot Dipped Galvanized Sheets and hiked the local inventory levels. The strike had been looming earlier as the big three extended their talks with the Union. The labor union comprising 140,000 members has potentially halted the car manufacturers market amid the idea of expanding the production of Electric and Hybrid vehicles, the major automobile industry sector.

According to ChemAnalyst, the price of Hot Dipped Galvanized Sheets is anticipated to remain stable as the labor strike deadline completes on 14 September, and still, the demand proposed by the UAW has not been fulfilled yet. Meanwhile, the mills are trying to tighten their supply to recover the declining price trend. Additionally, in the upcoming weeks, the major manufacturers will face a major power outage that could lower the production rate and help increase the manufacturing cost for Hot Dipped Galvanized Sheets in the US spot market.