Riding the coattails of the previous week's lusterless market conditions, almost all of the US domestic coated products have ticked down $2.00 cwt. ($44/mt or $40/nt) since our last report a week ago, leaving buyers feeling increasingly hesitant when it comes to placing orders beyond what's absolutely needed.
"The Galvanized market is going in the wrong direction like most other products," said one Midwest service center. "The last thing any of us want is to get stuck with high priced steel, and the only orders being placed right now are to plug inventory holes."
Lead times for US domestic hot dipped galvanized (HDG) and Galvalume products have slipped to just two to three weeks, and with the knowledge that product can be obtained quickly, some buyers have begun to take advantage of the knowledge that mills are becoming increasingly desperate to pad their order books.
Mills aren't turning much down these days, according to buyers, and prices are easily negotiable if someone is looking to book sizeable tonnage. Yet to that same token, buyers aren't necessarily jumping to place orders just yet, because additional downticks in transaction pricing are anticipated. As one trader put it, the market is still too uncertain for buyers to immediately react to a lower price.
For now, though, the trend forecast for HDG remains down, with the anticipation that October will be a scant month in terms of order placement. As with last week, while the ranges listed below represent the most commonly reported transaction ranges, booking slightly lower could be open for negotiations depending on order size.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $31-$33 | $684-$728 | $620-$660 | ↓$2.00 cwt. |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $42-$44 | $926- $970 | $840-$880 | ↓$2.00 cwt. |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $42-$44 | $926- $970 | $840-$880 | ↓$2.00 cwt. |
| Galvalume | ||||
| ex-Midwest mill | $31-$33 | $684-$728 | $620-$660 | ↓$2.00 cwt. |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $43- $44 | $948-$970 | $860-$880 | ↓$1.00 cwt. on high end |
Looking to imports offers have remained unchanged, although Mesco has started to become increasingly aggressive with their offerings, even on Galvalume. But again with the ever increasing volatility seen domestically, few traders are booking. In terms of current arrivals, Indian imports of HDG are exhibiting a marked month-on-month climb. According to the most recent data by the US Department of Commerce Import Administration, India has already delivered 27,995 mt (license data) of sheet and strip HDG to the US so far this month- an almost tenfold increase over the 3,066 mt delivered in September.
Import HDG offers to the US Cwt. Metric ton (mt) Net ton (nt) Change from last week 0.012"x40.875" G30 China $47-$48 $1,036-$1,058 $940-$960 neutral India $46-$47 $1,014-$1,036 $920-$940 neutral Mexico $42-$43 $926-$948 $840-$860 neutral Taiwan $48-$49 $1,058-$1,080 $960-$980 neutral 0.019"x48" G90 China $45-$47 $992-$1,036 $900-$940 neutral India $46-$47 $1,014-$1,036 $920-$940 neutral Taiwan $48-$49 $1,058-$1,080 $960-$980 neutral Galvalume 0.019x41.5625 Gr80/AZ55 China $46-$47 $1,014-$1,036 $920-$940 neutral Mexico $43 - $44 $948 - $970 $860-$880 neutral Taiwan $45-$47 $992-$1,036 $900-$940 neutral
*Mexican offers are FOB loaded truck US border states.
**Chinese, Taiwanese Indian, and offerings are duty-paid FOB loaded truck, US Gulf ports.