Long lead times hinder US import HDG activity

With offshore lead times now largely in November, US buyers are having a hard time committing to substantial offshore tonnages. With price increases gaining some traction in the US domestic hot dipped galvanized (HDG) and Galvalume coil market, US buyers have once again returned to the import market where prices have become increasingly attractive over the past couple weeks. Indian and Chinese offer prices to the US on HDG 0.012"x40.875" G30 have seemingly hit a temporary bottom, and trader sources tell SteelOrbis that Chinese mills can be persuaded to drop prices slightly below $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports for the right order. For the most part, however, buyers looking to book offshore tonnage are sticking with India.

Typical import buyers in the US have been booking reduced tonnages than usual, according to trader sources, as lead times are now firmly in Q4. Understandably, US buyers are avoiding December arrivals, especially with the US domestic market's long term pricing trend largely uncertain; therefore, some offshore mills have been willing to delay shipments so orders placed now do not arrive until after January 1. Otherwise, most buyers, including many traders purchasing material for stock or as position tons, are waiting until lead times move into the New Year.

**DPP loaded truck delivered into Houston