US HDG (hot dip galvanized) coil prices are still coming down in leaps and bounds as both domestic and import mills struggle to get business.
Since the beginning of the week, spot prices for domestic HDG coil have come down by approximately $2.00 cwt. ($44 /mt or $40 /nt). Most US mills are now offering base sizes at a range of $47.00 cwt. to $51.00 cwt. ($1,036 /mt to $1,124 /mt or $940 /nt to $1,020 /nt) ex-mill, Midwest, while offers for 0.019" x 48" G90 (0.48 mm x 1.219 m) coils now range from $56.00 cwt. to $60.00 cwt. ($1,235 /mt to $1,323 /mt or $1,120 /nt to $1,200 /nt) ex-mill, Midwest.
However, there are some offers seen at both above and below the above ranges - buyers say that there is easily a $100 /nt ($110 /mt or $5.00 cwt.) spread on competing offers from different mills. Mills are also very willing to negotiate the price, particularly for large buyers. Smaller buyers are paying prices at the upper end of the range of prices offered.
Demand for galvanized coil products remains weak and import offers abound, so even though they are flexible with their prices, domestic mills are still having a very hard time getting much business. In addition to the soft demand, raw material prices are heading downward - Busheling scrap has come down by as much as $225 /long ton since last month, and this price decrease will, no doubt, be reflected in spot prices as well as contract prices.
Import prices for HDG coil also continue to trend down, with most offers at comparable levels to US domestic prices. Foreign mills are also willing to negotiate the price for larger buyers. Although they are, in some cases, cheaper than the domestic offers, import offers still aren't getting very much traction since domestic mills can offer a much quicker delivery, and therefore less risk since the market is still trending sharply down.
Offers from China for HDG 0.019" x 48" G90 (0.48 mm x 1.219 m) have decreased significantly, by approximately $5.00 cwt., since the beginning of the week to a new level of $54.00 cwt. to $56.00 cwt. ($1,191 /mt to $1,235 /mt or $1,080 /nt to $1,120 /nt) duty-paid, FOB loaded truck West Coast ports.
For the same size and coating, Taiwanese offers have also decreased by $5.00 cwt. in just the last few days, and are now ranging from $57.00 cwt. to $59.00 cwt. ($1,257 /mt to $1,301 /mt or $1,140 /nt to $1,180 /nt) duty-paid, FOB loaded truck West Coast ports.
Meanwhile, Chinese offerings for HDG sized 0.028" x 48" G40 (0.71 mm x 1.219 m) have decreased by about $4.00 cwt. ($88 /mt or $80 /nt) to a range of $47.00 cwt. to $49.00 cwt. ($1,036 /mt to $1,080 /mt or $940 /nt to $980 /nt) duty-paid, 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 about $2.00 cwt. ($44 /mt or $40 /nt) since our last report. Offerings are now in the range of $53.00 cwt. to $55.00 cwt. ($1,168 /mt to $1,213 /mt or $1,060 /nt to $1,100 /nt) duty-paid FOB loaded truck Gulf ports.
For the same size and coating, Chinese offerings are also priced at $53.00 cwt. to $55.00 cwt. ($1,168 /mt to $1,213 /mt or $1,060 /nt to $1,100 /nt) duty-paid, FOB loaded truck West Coast ports, also showing a decrease of $2.00 cwt. since Monday.
Mexican offers for the same size and coating have also decreased by $2.00 cwt. Offers from Mexico at the border crossing are ranging from $56.00 cwt. to $58.00 cwt. ($1,235 /mt to $1,279 /mt or $1,120 /nt to $1,160 /nt) as well, though for quick November deliveries. All other offers mentioned above are for January/February deliveries.
Comparatively, domestic prices for 0.012" by 40.875" G30 (0.30 mm x 1.04 m) vary from mill to mill, but have also decreased, on average, by $2.00 cwt. since our last report and can now be found at a range of $58.00 cwt. to $61.00 cwt. ($1,279 /mt to $1,345 /mt or $1,160 /nt to $1,220 /nt) ex-mill, Midwest.
On the galvalume side of the market, for 0.019" by 48" AZ55 (0.48 mm x 1.219 m) items, domestic offers dropped $2.00 cwt. to a range of $60.00 cwt. to $62.00 cwt. ($1,323 /mt to $1,367 /mt or $1,200 /mt to $1,240 /nt) ex-mill. As for imports, both Taiwan and India are now offering at a range of $59.00 cwt. to $61.00 cwt. ($1,301 /mt to $1,345 /mt or $1,180 /nt to $1,220 /nt) duty-paid, FOB loaded truck in US Gulf ports, representing a $3.00 cwt. ($66 /mt or $60 /nt) decrease since our last report.