US buyers and sellers of hot dip galvanized (HDG) products are experiencing some hard times, as buying activity has slowed down significantly and prices are trending down as well.
Domestic HDG base spot prices are approximately $10 cwt. ($220 /mt or $200 /nt) short of the official list price published by mills, and they are continuing on a downward trend. Spot prices have fallen by about another $1.00 cwt. ($22 /mt or $20 /nt) in the last week as very little buying activity has prompted mills to offer lower prices in an attempt to grab some business.
Domestic HDG base spot prices are now ranging from $49.00 cwt. to $53.00 cwt. ($1,080 /mt to $1,168 /mt or $980 /nt to $1,060 /nt) ex-mill Midwest, while HDG 0.019" x 48" G90 (0.48 mm x 1.219 m) coils are now ranging from $58.00 cwt. to $62.00 cwt. ($1,279 /mt to $1,367 /mt or $1,160 /nt to $1,240 /nt) ex-mill Midwest and can be negotiated down further. The range is wide as prices vary from mill to mill; however, most buyers are finding prices right in the middle of the above ranges, with some able to strike deals for lower numbers.
Both the HDG and the galvalume markets are "incredibly weak" commented a US buyer. Domestic mills have been dealing with buyers wanting to renegotiate their previous deals, as prices have plummeted since the orders were placed. Some buyers are even opting to just cancel their orders all together, which mills will accept, although unhappily so, as long as the product has not been produced yet.
Not many customers are in buying mode right now; however, the buyers who do need to replenish some inventories are looking for the cheapest price. It's a buyers' market and buyers are taking advantage of it.
On the import side, prices have been trending down as well; however, virtually no one is interested in entertaining these offers because they are still higher than domestic levels.
Offers from China for HDG 0.019" x 48" G90 (0.48 mm x 1.219 m) are ranging from $59.00 cwt. to $61.00 cwt. ($1,301 /mt to $1,345 /mt or $1,180 /nt to $1,220 /nt) FOB loaded truck West Coast ports, a decrease of approximately $2.00 cwt. ($22 /mt or $20 /nt) in the last week.
Chinese offerings for HDG sized 0.028" x 48" G40 (0.71 mm x 1.219 m) have also fallen by $2.00 cwt. in the last week and now range from $51.00 cwt. to $53.00 cwt. ($1,124 /mt to $1,168 /mt or $1,020 /nt to $1,060 /nt) FOB loaded truck West Coast ports.
Offers from India for 0.012" by 40.875" G30 (0.30 mm x 1.04 m) have decreased by $2.00 cwt. ($44 /mt or $40 /nt) since our last report. Offerings are now in the range of $58.00 cwt. to $60.00 cwt. ($1,279 /mt to $1,323 /mt or $1,160 /nt to $1,200 /nt) FOB loaded truck Gulf ports.
For the same size and coating, Chinese offerings are also priced at $58.00 cwt. to $60.00 cwt. ($1,279 /mt to $1,323 /mt or $1,160 /nt to $1,200 /nt) FOB loaded truck West Coast ports.
Mexican offers for the same size and coating are also available. Offers from Mexico at the border crossing are ranging from $58.00 cwt. to $60.00 cwt. ($1,279 /mt to $1,323 /mt or $1,160 /nt to $1,200 /nt) as well, though for quick October deliveries. All other offers mentioned above are for December/January deliveries.
Comparatively, domestic prices for 0.012" by 40.875" G30 (0.30 mm x 1.04 m) vary from mill to mill, but can be found at a range of $60.00 cwt. to $63.00 cwt. ($1,323 /mt to $1,389 /mt or $1,200 /nt to $1,260 /nt) ex-mill Midwest.