Due largely in part to dismal conditions of commercial construction, the hot dipped galvanized market remains the most sluggish among US flat rolled products. Domestic hot dipped galvanized (HDG) prices have remained, for the most part; the same in the past week, and although mills are asking slightly higher prices this week, they have yet to stick at the same level as their hot rolled coil (HRC) and cold rolled coil (CRC) counterparts .
The actual transaction range widened by approximately $1.00 cwt. ($22/mt or $20/nt) since last week; with deals are now being seen for around $37.00 cwt. to $39.00 cwt. ($816/mt to $860/mt or $740/nt to $780/nt) ex-Midwest mills. Most order ranges for 0.019" x 48" G90 (0.48 mm x 1.219 m) and 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have also widened by about $1.00 cwt. ($22/mt or $20/nt) and can now be found from around $48.00 cwt. to $50.00 cwt. ($1,058/mt to $1,102/mt or $960/nt to $1,000/nt) ex-Midwest mills and $49.00 cwt. to $52.00 cwt. ($1,080/mt to $1,146/mt or $980/nt to $1,040/nt) ex-Midwest mills respectively.
Domestic Galvalume base sizes have remained neutral since last week and are still being offered at approximately $37.00 cwt. to $38.00 cwt. ($816/mt to $838/mt or $740/nt to $760/nt) ex-Midwest mills, while offers for 0.019" x 41.5625" Gr80/AZ55 continue to be seen at around $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) ex-Midwest mills.
With overall flats prices on a path of continuous uptick, HDG prices will be sure to follow; but at a slower pace. At current, HDG buyers appear to have their fill and are not eager to pursue many new orders. To that same effect, there is plenty of availability, so ongoing price increases are beginning to raise eyebrows. Commercial construction volume continues to struggle mightily and some industry advocates do not expected projects to pick back up until 2011. However, others look to the improving weather as a potential light on the horizon. For now, at least, current market conditions will hold their course as the new normal and buyers will continue to be more reserved when it comes to placing orders due to concerns that they may not be able to pass price increases onto their customers.
On the import side, Chinese offers for 0.019" G90 and 0.012" G30 have remained neutral since last week and continue to be seen for around $45.00 cwt. to $46.00 cwt. ($992/mt to $1,014/mt or $900/nt to $920/nt), duty-paid, FOB loaded truck in US Gulf ports. Most of these offers are from second-tier mills and these HDG offers, significantly lower than that what foreign competitors are asking, are expected to slowly begin to phase out.
In other developments, Indian import indications for 0.019" G90 have increased a whopping $4.00 cwt. ($88/mt or $80/nt) since last week, with offers now being seen at around $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt) FOB loaded truck in US Gulf ports. Taiwanese offers of 0.019" G90 to the US have also increased approximately $4.00 cwt. ($88/mt or $80/nt) and are now seen at around $51.00 cwt. to $52.00 cwt. ($1,124/mt to $1,146/mt or $1,020/nt to $1,040/nt), duty-paid, FOB loaded truck in US Gulf ports.
On the lighter gauges, 0.012" G30 from India have increased approximately $4.00 cwt. ($88/mt or $80/nt) since last week, with offers now being seen at around $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), while most Taiwanese offers of the same product have increased approximately $3.50 cwt. ($77/mt or $70/nt) and are now seen at around $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), both duty-paid, FOB loaded truck in US Gulf ports. Indian and Taiwanese HDG offers are unlikely to receive much interest over the coming weeks due to market conditions and being out priced by Chinese mills.
Taiwanese Galvalume offerings have increased by approximately $1.50 cwt. ($33/mt or $30/nt) over the past week and are now being seen at around $49.00 cwt. to $50.00 cwt. ($1,080/mt to $1,102/mt or $980/nt to $1,000/nt) duty-paid, FOB loaded truck in US Gulf ports, while Mexico offers for Galvalume to the US have increased approximately $2.00 cwt. ($42/mt or $40/nt), and can mostly be found at around $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), delivered to US border states.
License data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that the total import tonnage of HDG for March is on track to surpass the 93,933 mt reported in February, in that as of March 10, import tonnage of HDG has already been reported at 62,051 mt. Leading HDG importers for the month of March include Mexico, at 17,359 mt, a marked increase from the 10,414 mt imported in February; Korea, at 11,254 mt; Taiwan, at 11,232 mt; and Canada, at 10,107 mt.
