US domestic HDG spot prices rise for third consecutive week

Tuesday, 13 September 2011 02:35:43 (GMT+3)   |  
       

Spot prices in the US domestic hot dipped galvanized (HDG) market have once again increased in the last week, but deals being cut for large orders are still being reported.

Amid consistent US domestic demand for coated flat steel products, and mills' insistence on pushing through recently announced price hikes and the full cost of coating extras of HDG and Galvalume coil, domestic HDG light- and heavy-gauge spot prices have increased again by approximately $1.00 cwt. ($22/mt or $20/nt)--the third rise in as many weeks. Domestic Galvalume base spot prices have also increased $1.00 cwt. ($22/mt or $20/nt) on the low end into the more narrow range of $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) ex-Midwest mill. Meanwhile, HDG base spot prices have stayed neutral in the last week in the range of $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) ex-Midwest mill, but are also likely to rise by about $1.00 cwt. by next week.

But while domestic mills have been successful in collecting about half of their $5.00 cwt. ($110/mt or $100/nt) in increases announced over the last month, that's not to say that they aren't still willing to be flexible for large buyers or loyal customers--for orders considered to be of "significant tonnage," deals have been made as much as $1.00-$2.00 cwt. under the current spot ranges.

Sources  also tell SteelOrbis that although some mills are informing customers that HDG order books are already closed for October shipments, "if you call in an order today, I don't know a single mill that'll turn you down," indicating that order books are not as strong as many flats mills would like customers to believe.

 Cwt.Metric Ton (mt)Net ton (nt)Change from last week
US domestic HDG base price$39.00-$41.00$860-$904$780-$820neutral
     
0.012"x40.875" G30    
ex-Midwest mill$51.00-$52.00$1,124-$1,146$1,020-$1,040↑$1.00 cwt.
     
0.019"x48" G90    
ex-Midwest mill$51.00-$53.00$1,124-$1,168$1,020-$1,060↑$1.00 cwt.
     
US domestic Galvalume base price     
ex-Midwest mill$40.00-$41.00$882-$904$800-$820↑$1.00 cwt. on low end
     
0.019x41.5625 Gr80/AZ55    
ex-Midwest mill$50.00-$52.00$1,102-$1,146$1,000-$1,040↑$1.00 cwt. 

On the other hand, most offshore HDG and Galvalume mills are not willing to cut prices in order to get orders from the US, and the majority of import offer prices have stayed neutral or even increased since last week. Mexican Galvalume 0.019x41.5625 Gr80/AZ55 prices have increased $2.00 cwt. on the high end ($1.00 cwt. on the low end) in the last week to $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) DDP loaded truck in US Gulf, following the uptrend in the US domestic market. Additionally, trader sources have informed SteelOrbis that Chinese HDG mills believe their offer prices to the US may be too low, and are also looking to raise prices in the coming weeks.

Import HDG offers to the USCwt.Metric ton (mt)Net ton (nt)Change from last week
     
0.012"x40.875" G30    
India*$50-$51$1,102-$1,124$1,000-$1,020neutral
China*$48.50-$49.50$1,069-$1,091$970-$990neutral
Mexico**$49-$50$1,080-$1,102$980-$1000neutral
     
0.019" x 48" G90     
China*$49.50-$50.50$1,091-$1,113$990-1,010neutral
India*$52-$54$1,146-$1,190$1,040-$1,080neutral
Mexico**$49-$50$1,080-$1,102$980-$1000neutral
Taiwan*$53-$55$1,168-$1,213$1,060-$1,100neutral
     
Import Galvalume offers to the US     
0.019x41.5625 Gr80/AZ55    
Taiwan*$52.50-$53.50$1,157-$1,179$1,050-$1,070neutral
Mexico**$50-$52$1,102-$1,146$1,000-$1,040↑$2.00 cwt. on high end
China*$52-$53$1,146-$1,168$1,040-$1,060neutral
India*$53-$54$1,168-$1,190$1,060-$1,080neutral
*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston


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