Despite buyers' initially reluctant reactions to the price increases announced by US flat rolled producers in June, the majority of the price hikes appear to be sticking, particularly for hot-dipped galvanized and coated products.
On HDG, several US producers are already reporting they are booked out for August, and some are about to close their books for August. Galvalume products are particularly hot, with the majority of mills having closed their order entries for August deliveries of Galvalume and some even claiming to be mostly full for September.
Although only a week ago, there were some serious doubts as to whether the August price hikes would stick, mills now seem to be collecting much, if not all of them. Most of the HDG orders booked for August were presumably booked at the August prices, though there is a good chance that mills accepted the July prices for some customers. Most domestic HDG base price offers for August range from $27.00 cwt. to $29.00 cwt. ($595 /mt to $639 /mt or $540 /nt to $580 /nt).
Domestic offers for the most commonly produced HDG product, 0.019” x 48” G90 (0.48 mm x 1.219 m) are found at a minimum of $35.50 cwt. ($783 /mt or $710 /nt) ex-Midwest mills, while the lighter gauge item, 0.012” 40.875” G30 (0.30 mm x 1.04 m), is offered at a range of $38.00 cwt. to $40.00 cwt. ($838 /mt to $882 /mt or $760 /nt to $800 /nt) ex-mill in the Midwest.
With August orders filling up, there is a growing expectation that a September price increase announcement from US flat rolled mills is on the way. If most mills start closing their books for August and US busheling scrap prices rise by an expected $50 to $80 /long ton this month, US flats mills could announce a price increase for September shipments as soon as next week.
On the import side, things remain very quiet, with most sources not currently offering as they are still waiting until US price levels improve further before they put out new offers. US flat rolled buyers have very little interest in the import market at present anyway, as prices are not competitive and import lead times are stretching out to as long as December in some cases. Despite the recent domestic price hikes, most customers are still somewhat skeptical as to whether the current uptrend will last and are still just filling holes in their inventories rather than hedge buying.
On the 0.019” G90 side, offers for the US from Chinese mills remain at a level of $36.00 cwt. to $38.00 cwt. ($794 /mt to $838 /mt or $720 /nt to $760 /nt), duty-paid, FOB loaded truck, in US Gulf Coast ports while South Korean offers range from $37.00 cwt. to $38.00 cwt ($816 /mt to $838 /mt or $740 /nt to $760 /nt) duty-paid, FOB loaded truck, in US West Coast ports.
For 0.012” G30, the price indication for India is a minimum of $40.00 cwt. ($882 /mt or $800 /nt) duty-paid, FOB loaded truck, in US Gulf Coast ports, and Korean offers are also at a minimum of $40.00 cwt., FOB to US West Coast ports.