US domestic hot dipped galvanized (HDG) base price transaction ranges have remained relatively stable since our last report a week ago, with a sustained trend for price corrections taking place for products with various coating extras.
With continued lackluster order placement and an excess of steel at the mill level due to over production, this week's outlook for HDG and Galvalume remains soft to slightly down. And according to one Midwest service center, as long as their customers' order activity remains low, purchasing managers are holding off as long as they can, because they can. Lead times for domestic HDG have continued to decline since the beginning of June, from 7.8 weeks during period between May 31 to June 6, to a 6.6-week lead time during the period between June 7 to 13, and lead times ranging from four to six weeks being reported as recently as today (and even less than that for some standard sizes).
So for now, unless service centers start seeing marked increases in demand from end users, the trend of inventory belt tightening will prevail.
In addition, while the below transaction ranges represent those most commonly being seen, it should be noted that the trend of "let's make a deal" seen previously by mills in an attempt to get orders remains prevalent.
The range for US domestic HDG base spot pricing has, for the second week in a row, remained neutral, with offers continuing to be reported in the approximate range of $37.00 cwt. to $38.00 cwt. ($816/mt to $838/mt or $740/nt to $760/nt), ex-Midwest mills.
However, transaction pricing for 0.012" x 40.875" G30 (0.30 mm x 1.04 m) has softened by approximately $0.50 cwt. ($11/mt or $10/nt) since our last report, with offers now being seen in the approximate range of $47.50 cwt. to $49.50 cwt. ($1,047/mt to $1,091/mt or $950/nt to $990/nt), ex-Midwest mills.
Offerings for 0.019" x 48" G90 (0.48 mm x 1.219 m), however, as with US domestic base HDG, has remained neutral for a second week. Reported transaction pricing ranges for 0.019" x 48" G90 (0.48 mm x 1.219 m) continue to be reported at about $46.50 cwt. to $48.50 cwt. ($1,025/mt to $1,069/mt or $930/nt to $970/nt), ex-Midwest mills.
Shifting focus to Galvalume coil, domestic transaction prices have softened by approximately $1.00 cwt. ($22/mt or $20/nt) and are now being seen in the approximate range of $37.00 cwt. to $39.00 cwt. ($816/mt to $860/mt or $740/nt to $780/nt), ex-Midwest mills.
The range for offers of Galvalume 0.019" x 41.5625" Gr80/AZ55, have also softened by approximately $1.00 cwt. ($22/mt or $20/nt) and are currently being reported in the approximate range of $49.00 cwt. to $51.00 cwt. ($1,080/mt to $1,124/mt or $980/nt to $1,020/nt), ex-Midwest mills.
Looking offshore, import offers for HDG 0.012" x 40.875" G30 (0.30 mm x 1.04 m), out of India and China have once again softened since our last report a week ago. Indian offers for HDG 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have softened by approximately $1.00 cwt. ($22/mt or $20/nt) and are now being seen at around $46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt) FOB loaded truck US Gulf ports. Chinese offerings of this same product have softened by about $3.00 cwt. ($66/mt or $60/nt) since last week and are now being reported in the approximate range of $44.00 cwt. to $46.00 cwt. ($970/mt to $1,014/mt or $880/nt to $920/nt), FOB loaded truck US Gulf ports.
Indian import offers for HDG 0.019" x 48" G90 (0.48 mm x 1.219 m), have decreased by approximately $1.00 cwt. ($22/mt or $20/nt) from our last report, bringing transaction price offers even with Chinese offerings for this same product. Spot offers for this product out of both countries are now being seen at about $46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt), FOB loaded truck US Gulf ports. As previously reported, pricing for this particular product, considering longer lead times than those available domestically, are not attracting much interest, but as prices continue to tick downward, another trader has indicated that this could soon change.
Looking at Galvalume 0.019" x 41.4625" Gr80/AZ55p, import offers out of China have have decreased $2.00 cwt. ($44/mt or $40/nt) since our last report a week ago, and are now reported as being offered in the approximate range of $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt), FOB loaded truck US Gulf ports. China, though, may offer greater flexibility in price negotiations so as to secure orders over other overseas mills.
While offers out of Taiwan and India for 0.019" x 48" G90 (0.48 mm x 1.219 m) are still being reported, they are being offered on a "bid" basis, with mills asking those who may have an interest in this product to submit proposed pricing models for review.