The US hot-dip galvanized (HDG) coil market has become somewhat more negotiable in recent weeks, as domestic mills are getting more aggressive and are making more special deals. At the same time, what was once the most competitive import source in the US HDG market, remains curiously absent.
Due to a reduction in base prices, domestic offers for 0.019" x 48" G90 (0.48 mm x 1.219 m), have fallen by an average of $2.00 cwt. ($44 /mt or $40 /nt) since last week, with most offers now ranging from approximately $36.00 cwt. to $38.00 cwt. ($784 /mt to $838 /mt or $720 /nt to $760 /nt) FOB Midwest mills. Domestic prices for 0.012" x 4.875" G30 (0.30 mm x 1.04 m) also fell by $2.00 cwt. since last week and now mostly range from about $34.00 cwt. to $36.00 cwt. ($750 /mt to $794 /mt or $680 /nt to $720 nt) FOB mill. However, these ranges are, to some extent, negotiable, as domestic mills are often willing to match import prices for serious buyers.
Among the flat rolled products, the US HDG business is probably the softest. At a range of $27.00 cwt. to $29.00 cwt. ($595 /mt to $639 /mt or $540 /nt to $580 /nt) ex-Midwest mills, domestic HDG base prices are now at approximately the same level as domestic cold rolled coil prices, which, as one flat rolled buyer told SteelOrbis this week, is "virtually unheard of" under normal market conditions. Meanwhile, buyers generally seem to be hesitant again, and are waiting on the sidelines for prices to slip further.
"Base prices for domestic galvalume offers have also fallen by $2.00 cwt., with most offers for 0.019" x 41.5625" Gr80/AZ55 now ranging from $37.00 cwt. to $39.00 cwt. ($816 /mt to $838 /mt or $740 /nt to $760 /nt) FOB Midwest mills. Base prices for galvalume now range from $28.00 cwt. to $30.00 cwt. ($617 /mt to $661 /mt or $560 /nt to $600 /nt) FOB Midwest mills."
On the import side, traders say that offshore business is pretty much back down to a "bid basis," in which the price is set once the trader bids the mill on the amount of tons he wants to buy. There is a good amount of "wiggle room" between the numbers given when prices are inquired, and the actual price that the mills are willing to agree to once the trader places a firm bid with an actual order behind it.
India is currently the most competitive source for import HDG offers to the US, while China, once the most aggressive source for import HDG, has yet to come back to the market with competitive offers. Traders find this change somewhat puzzling and suspect that fears of an antidumping case may be behind China's absence as of late from the US flat rolled market, rather than a strong demand from China's domestic market or other export markets.
Since last week, sales prices for import HDG products in the US have generally remained stable, though, as stated, prices are somewhat negotiable, and continue to trend down on the whole.
Current import offers for 0.012" G30 items are as follows: Mexico: $36.00 cwt. to $38.00 cwt. ($838 /mt to $882 /mt or $760 /nt to $800 /nt) at the border crossing; Taiwan: $36.00 cwt. to $38.00 cwt. duty-paid FOB loaded truck in West Coast ports; India: $35.00 cwt. to $37.00 cwt. ($772 /mt to $816 /mt or $700 /nt to $740 /nt) duty-paid FOB loaded truck in US Gulf ports.
Import offers of 0.019" G90 from India currently range from $33.00 cwt. to $35.00 cwt. ($728 /mt to $772 /mt or $660 /nt to $700 /nt) duty-paid FOB loaded truck in US Gulf ports.
Import offers of galvalume (0.019" AZ55) from Taiwan, India and South Korea moved down by about $1.00 cwt. since last week, with most offers now ranging from approximately $37.00 cwt. to $39.00 cwt. duty-paid, FOB loaded truck in Gulf and West Coast ports. Mexican offers are also found at this price level at the US border crossing.