Americas Steel: HDG Prices Surge as Flat Roll Prices Increase

Flat roll steel prices, particularly HDG (+9%), rose sharply this week due to supply tightness and lower imports. This trend supports a bullish outlook for major domestic producers like Nucor, Cleveland-Cliffs, and Steel Dynamics.

Key Takeaways

• 1.Hot-dipped galvanized (HDG) prices surged 9% this week, driven by supply tightness and rising zinc costs.
• 2.Supply tightness is expected to persist into 2Q26 due to declining imports and healthy domestic demand, providing a pricing tailwind.
• 3.Domestic steel producers Nucor (NUE), Cleveland-Cliffs (CLF), and Steel Dynamics (STLD) are primary beneficiaries of higher flat roll prices.

Table of Contents

• Flat roll steel prices rise on supply tightness
• Company level impacts
• Valuation and key risks
• NUE - Buy
• CLF - Neutral
• STLD - Not Rated
• Disclosure Appendix

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