Import HDG offers to US decline but activity still minimal

Even though US import hot dipped galvanized (HDG) and Galvalume offer prices have decreased again in the last week, import interest has remained light. Traders tell SteelOrbis that Chinese, Indian and Taiwanese mills have had little choice but to lower offer prices to the US if they want to attract any import interest from US customers. However, even after Chinese and Indian offers for HDG 0.012"x40.875" G30 and 0.019" x 48" G90 dropped another $0.50 cwt. ($11/mt or $10/nt) or so in the last week, they are still less than $2.00 cwt. ($44/mt or $40/nt) below US domestic spot prices, too much of a risk for most to take when the long term direction of the US market is in limbo.

Trader sources explained that the only location where customers are willing to book offshore tons is on the West Coast, where domestic spot prices are higher and therefore futures offers are less of a gamble. As for Galvalume, Taiwanese mills are now out of the market after making some deals at $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) DDP loaded truck in US Gulf ports, down $0.50 cwt. since last week. Mexican offers have also come down in the last week and those situated near US Gulf ports have placed occasional orders south of the border.

**DDP loaded truck delivered into Houston