In the fourth week of November, the Hot-Dip Galvanized (HDG) Sheet market in the United States showed signs of resilience, reflecting a growing demand for this essential material. The rise in HDG prices can be attributed to several factors, including tight supply conditions, stable downstream demand, and strategic inventory management by Sheet producers. Moreover, the ongoing fluctuations in the refined zinc market—an essential component in HDG manufacturing—have further influenced pricing dynamics.

The Hot Dip Galvanized (HDG) Sheet market in the United States experienced notable dynamics in November, with spot market prices increasing by 1.5% for the week ending November 29th. A recent report from the International Lead and Zinc Study Group (ILZSG) indicates that North America is facing a 2.5% year-over-year decline in refined zinc production due to output losses stemming from a fire at Teck Resources’ Trail Operations in British Columbia and maintenance activities at the Valleyfield smelter in Quebec. As a result, the elevated costs of zinc may have contributed to the recent uptick in HDG prices.

According to the U.S. Department of Commerce (USDOC), approximately 243,000 tons of HDG sheets and strips were imported in September, marking a decline of 2.7% from the previous month but a significant increase of 31% from the same month in the previous year. Canadian imports comprised the largest portion, totalling around 80,400 tons, which reflects a month-on-month increase of 0.5% and an 11% year-over-year rise. Notably, imports from Vietnam accounted for about 62,200 tons during this period. The value of HDG imports reached approximately $264 million, down 3.5% month-on-month but up 26% year-over-year.

Data reported by the American Iron and Sheet Institute (AISI) reveals that U.S. Sheet companies ramped up their imports of rolled Sheet products, including HDG, by 8.6% in October compared to September. This brought the total imports of rolled Sheet to approximately 1.84 million tons, while total Sheet imports rose by 12% to 2.39 million tons. HDG specifically represented the largest volume of these imports, even though it experienced a decline of 9.6% month-over-month. Overall, finished Sheet products accounted for 76.9% of total imports, signifying a continued preference for higher-quality materials in domestic applications.

The manufacturing sector's context provides additional insights into HDG market dynamics. The U.S. manufacturing index indicates a near-stabilization midway through the final quarter, with purchasing activity and input stocks experiencing slight declines. Some manufacturers are strategically purchasing inputs in anticipation of potential tariff impositions and positive output expectations.

As per ChemAnalyst, the HDG market is anticipated to experience moderate growth in 2025, with projected price adjustments. The analysis suggests that ongoing market challenges, including zinc availability and global trade dynamics, will continue to influence HDG pricing. However, potential infrastructure investments and gradually stabilizing manufacturing conditions could provide supportive fundamentals for the HDG market. The outlook remains cautiously optimistic, with market participants expecting incremental improvements contingent upon global economic recovery and strategic trade policies.