Following the downward trend of hot rolled coils (HRC), US domestic hot dip galvanized (HDG) coil prices have slid further this week, with prices down another $60/nt.
Domestic HDG coil prices have fallen another $3.00 cwt. ($66 /mt or $60 /nt) across the board since last week, and expectations are that prices will continue to fall further. Domestic spot prices for base sizes of HDG coil items are now ranging from $44.00 cwt. to $46.00 cwt. ($970 /mt to $1,014 /mt or $880 /nt to $920 /nt) from most mills in the Midwest region, although buyers say mills will still make deals for lower numbers for the right inquiry. For sizes 0.019" x 48" G90 (0.48 mm x 1.219 m), domestic mills are selling in the range of $53.00 cwt. to $55.00 cwt. ($1,168 /mt to $1,213 /mt or $1,060 /nt to $1,100 /nt) ex-mill Midwest. For 0.012" by 40.875" G30 (0.30 mm x 1.04 m) sized items, domestic mills are falling within the range of $55.00 cwt. to $57.00 cwt. ($1,213 /mt to $1,257 /mt or $1,100 /nt to $1,140 /nt) ex-mill Midwest.
The above price range is an average, as buyers say that HDG coil offers can be found at prices all over the map. Whereas some large buyers can negotiate prices that much lower, other small buyers may find prices to be slightly higher. However, prices are falling very fast, and in order to achieve the best price, most business is done on a bid basis.
Demand for galvanized products, and all flat rolled products in general, continues to be weak and mills are having trouble getting much business, which is a prime reason for the constant price slashing. In addition to the price cuts, domestic flat rolled mills have been cutting back output as well, and more production cuts are expected in the weeks to follow.
In a fight for business, offshore sources have also been lowering their numbers for the US as well. Although not many US buyers are too interested in purchasing offshore right now due to the declining US market and the uncertainty as to when the market will finally bottom out, countries such as China, Taiwan and India are vying for US business, presenting very competitive numbers to their US customers.
Offers from China for HDG 0.019" x 48" G90 (0.48 mm x 1.219 m) items have decreased significantly, by approximately $5.00 cwt., since last week to a new level of $49.00 cwt. to $51.00 cwt. ($1,080 /mt to $1,124 /mt or $980 /nt to $1,020 /nt) duty-paid, FOB loaded truck West Coast ports.
For the same size and coating, Taiwanese offers have decreased by $6.00 cwt. in just the last few days, and are now ranging from $51.00 cwt. to $53.00 cwt. ($1,124 /mt to $1,168 /mt or $1,020 /nt to $1,060 /nt) duty-paid, FOB loaded truck West Coast ports.
Meanwhile, Chinese offerings for HDG sized 0.028" x 48" G40 (0.71 mm x 1.219 m) have decreased by about $1.00 cwt. to a range of $46.00 cwt. to $48.00 cwt. ($1,014 /mt to $1,058 /mt or $920 /nt to $960 /nt) duty-paid, FOB loaded truck West Coast ports.
New offers from India for 0.012" by 40.875" G30 (0.30 mm x 1.04 m) are due out next week and are expected to be significantly lower than their last offering range of $53.00 cwt. to $55.00 cwt. ($1,168 /mt to $1,213 /mt or $1,060 /nt to $1,100 /nt) duty-paid FOB loaded truck Gulf ports.
For the same size and coating, Chinese offerings have fallen $2.00 cwt. and are now priced at $51.00 cwt. to $53.00 cwt. ($1,124 /mt to $1,168 /mt or $1,020 /nt to $1,060 /nt) duty-paid, FOB loaded truck West Coast ports.
Mexican offers for the same size and coating have also decreased by $2.00 cwt. Offers from Mexico at the border crossing are ranging from $54.00 cwt. to $56.00 cwt. ($1,191 /mt to $1,235 /mt or $1,080 /nt to $1,120 /nt).
On the galvalume side of the market, for 0.019" by 48" AZ55 (0.48 mm x 1.219 m) items, domestic offers dropped $5.00 cwt. to a range of $55.00 cwt. to $57.00 cwt. ($1,213 /mt to $1,257 /mt or $1,100 /nt to $1,140 /nt) ex-mill. As for imports, Taiwan is now offering at a range of $54.00 cwt. to $56.00 cwt. ($1,191 /mt to $1,235 /mt or $1,080 /nt to $1,120 /nt) duty-paid, FOB loaded truck in US Gulf ports, representing a $5.00 cwt. decrease since our last report. New offers from India are expected to be out next week.