Despite the recent increase announced by US mills on hot dipped galvanized (HDG) offers, spot prices and activity has remained relatively neutral over the past couple weeks.
Most domestic HDG offers continue to range from approximately $36.00 cwt. to $37.00 cwt. ($794/mt to $816/mt or $720/nt to $740/nt) ex-Midwest mills, while offers of 0.019" x 48" G90 (0.48 mm x 1.219 m) are still mostly found from $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt) ex-Midwest mills. Meanwhile, domestic offers of 0.012" x 40.875" G30 (0.30 mm x 1.04 m) continue to range from approximately $49.00 cwt. to $51.00 cwt. ($1,080/mt to $1,124/mt or $980/nt to $1,020/nt) ex-Midwest mills. Domestic Galvalume offers are also stable from our last report, with most base prices ranging from $36.00 cwt. to $37.00 cwt. ($794/mt to $816/mt or $720/nt to $740/nt) and 0.019" x 41.5625" Gr80/AZ55 at approximately $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt) ex-Midwest mills.
With the ongoing harsh winter weather and overall demand remaining flat, the US HDG market is finally beginning to demonstrate a reluctance to absorbing recent price increases. The large increases seen in previous months may be coming to an end for this cycle; however, prices continue to remain slightly up over the next several weeks before the prices change direction. Zinc prices have demonstrated a slight uptick this week, which could provide a little more upside to HDG prices.
On the import side, Chinese offers for 0.019" G90 have trended neutral from last week, with offers still ranging between $44.00 cwt. to $46.00 cwt. ($970/mt to $1,014/mt or $880/nt to $920/nt) duty-paid, FOB loaded truck in US Gulf ports. China is, however, expected to announce updated pricing with the close of the Chinese New Year holiday. In addition, Indian and Taiwanese import indications for 0.019" G90 have also trended neutral and can be found at approximately $47.00 cwt. to $48.00($1,036/mt to $1,058/mt or $940/nt to $960/nt) and higher, duty-paid, FOB loaded truck in US Gulf ports.
On the light gauges, 0.012" G30 from India continue to range from around $46.00cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt) while most Taiwanese offers of the same product are mostly being seen at about $47.00 cwt. ($1,036/mt or $940/nt) and higher, both duty-paid, FOB loaded truck in US Gulf ports. On another note, traders may also find Taiwanese Galvalume offers remaining neutral from our last report at approximately $47.50 cwt. ($1,047/mt or $950/nt) and higher duty-paid, FOB loaded truck in US Gulf ports, while Mexico is offering some Galvalume to the US at a range of $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) delivered to US border states.
License date from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that the total import tonnage of HDG has increased from 72,846 mt (census data) in December to 87,202 mt (license data) in January, with Canada increasing imports from 32,768 mt in December to 39,304 mt in January. The only other sources to import over 1,000 mt of HDG to the US were Korea, at 13,537 mt and India, at 1,380 mt.