The momentum for US hot dip
galvanized (HDG) coil prices seems to have stalled for the time being, as producers have yet to push through their full November/December price hikes, and import prices have started to retreat.
US domestic HDG prices are unchanged since last week, and base prices have yet to hit the full $36.00 cwt. ($794/mt or $720/nt)+ levels announced by mills last month for November/December shipments. Furthermore, there doesn't seem to be much momentum that would indicate prices will actually reach these levels, as hot rolled activity remains very quiet and the coming holiday season will likely mean a slowdown in flat rolled activity across the board. Still, there is not much risk of any significant softening, as inventories remain tight and there are still very few imports scheduled to arrive on US shores for the duration of the year.
Currently, US HDG base prices remain at a range of $33.00 cwt. to $35.00 cwt. ($728/mt to $772/mt or $660/nt to $700/nt). Domestic spot offers for 0.019” x 48” G90 (0.48 mm x 1.219 m) remain at a range of $44.00 cwt. to $46.00 cwt. ($970/mt to $1,014/mt or $880/nt to $920/nt) ex-Midwest mills. Offers for 0.012” x 40.875” G30 (0.30 mm x 1.04 m), still range from approximately $48.00 cwt. to $50.00 cwt. ($1,058/mt to $1,102/mt or $960/nt to $1,000/nt) ex-mill, Midwest. Domestic offers of Galvalume 0.019” x 41.5625” Gr.80/AZ55– aluminum and zinc alloy-
coated sheet –range from $45.00 cwt. to $47.00 cwt. ($992/mt to $1,036/mt or $900/nt to $940/nt) ex-mill, Midwest. Generally, domestic HDG prices have not moved in the past couple weeks as the flurry of activity that characterized the summer months seems to have finally cooled off with the coming of the slower autumn season as well as the wind-down of “cash for clunkers” activity.
On the import side, Indian and Chinese HDG offers for the US have declined further since last week, largely in response to the softening in
China's domestic HDG market. For the first time in awhile, import numbers are starting to look more attractive compared to domestic offers. Still, there is little interest in purchasing import material which will arrive in the late fourth quarter, especially as there is a good chance prices could come down further. Most buyers continue to prefer to stick with smaller domestic shipments to replenish their inventories as-needed and are still keeping inventories lean to protect themselves from another possible downturn. Import offers are starting to look interesting, but it will probably be another couple months before buyers start looking seriously at import again.
After retreating by about $1.00 cwt. ($22/mt or $20/nt) in the last week, import Chinese offers of 0.019” G90 now range from approximately $40.00 cwt. to $42.00 cwt. ($882/mt to $926/mt or $800/nt to $840/nt) duty-paid, FOB loaded truck in US Gulf ports. Chinese offers of 0.012” G30 are now offered at $40.00 cwt. to $41.00 cwt. ($882/mt to $904/mt or $800/nt to $820/nt) FOB loaded truck in US Gulf ports, also down $1.00 cwt. from last week.
Indian HDG offers have also declined since last week, with both 0.019” G90 and 0.012” G30 offers coming down by about $2.00 cwt. ($44/mt or $40/nt) since last week. Most Indian 0.019” G90 offers now range from $41.50 cwt. to $42.50 cwt. ($915/mt to $937/mt or $830/nt to $850/tn) duty-paid, FOB loaded truck in US Gulf ports, and most 0.012” G30 offers now range from $42.50 cwt. to $43.50 cwt. ($937/mt to $959/mt or $850/nt to $870/nt) duty-paid, FOB loaded truck in US Gulf ports.
On the Galvalume end, there are currently import offerings for the US of 0.019” AZ55 from
India and
China. Both sources are offering at an approximate range of $44.00 cwt. to $45.00 cwt. ($970/mt to $992/mt or $880/nt to $900/nt) duty-paid, FOB loaded truck in US Gulf ports.
China's offers are flat from last week, while
India's are down $1.00 cwt.