US hot dip galvanized (HDG) prices have remained largely stable since last week, with most spot prices hovering between the August and September price levels announced by domestic mills.
US flat rolled mills are mostly booking for early September shipments, though Galvalume lead times are a little further out. The “mad scramble” to book tons following mills' first two price increases of the summer seems to have subsided, as inventory holes have been filled, but in general, any new orders are being booked at the higher prices, and there is still some upward momentum in the market due to an improved outlook for automotive in the second half. Generally, the July and August flat rolled price increases have successfully gone through, and the September hikes, ranging from $40/nt to $60/nt ($44 /mt to $66 /mt or $2.00 cwt. to $3.00 cwt.), are still in the process of going through, though the outlook is good.
Most domestic galvanized coil base prices continue to range from $29.00 cwt. to $31.00 cwt. ($639 /mt to $683 /mt or $540 /nt to $620 /nt), while 0.019” x 48” G90 (0.48 mm x 1.219 m) offers range from $38.00 cwt. to $40.00 cwt. ($838 /mt to $882 /mt or $760 /nt to $800 /nt). Domestic offers of 0.012” x 40.875” G30 (0.30 mm x 1.04 m) range from $40.00 cwt. to $42.00 cwt. ($882 /mt to $926 /mt or $800 /nt to $840 /nt). All prices are ex-mill, Midwest.
Domestic Galvalume prices base prices are still offered at a range of $30.00 cwt. to $32.00 cwt. ($661 /mt to $705 /mt or $600 /nt to $640 /nt) and 0.019" x 41.5625" AZ55 (0.482 mm x 1.056 m) offers range from $39.00 cwt. to $41.00 cwt. ($860 /mt to $904 /mt or $780 /nt to $820 /nt) ex-Midwest mills.
A couple concerns for the US HDG market going forward are scrap prices and increasing production. If US busheling scrap prices fall back significantly in August or September, this will likely cause flat rolled prices to retreat as well (though only if the decrease is substantial). Mills are also starting to increase production again, and are opening new galvanizing lines in some cases, which may relieve some of the tightness in supplies and potentially cause some price reversal. For now, though, it seems that mills are keeping production in line with demand and are not increasing their output significantly, while imports are still of the picture. Domestic production is something to keep an eye on going forward, however, as end-use demand still remains weak.
The latest import offers of 0.019” G90 from India range from $38.00 cwt. to $40.00 cwt. duty-paid, FOB loaded truck in US Gulf ports, while the latest offers of this product from Taiwan are about $1.00 cwt. higher
Offers of 0.012” G30 from both India and China range from approximately $40.00 cwt. to $42.00 cwt. in the Gulf, with offers from Taiwan being about $2.00 cwt. higher. India and Taiwan are both offering Galvalume (0.019” AZ55) at a range of $41.00 cwt. to $43.00 cwt. ($904 /mt to $948 /mt or $820 /nt to $860 /nt) in the Gulf.
Traders expect HDG imports to remain at only a slow trickle for the rest of the year, as they are still only viable for niche, specialty items that domestic mills do not produce in large quantities.