US import HDG market shows signs of improvement as prices falter

The downward slide of import hot dipped galvanized (HDG) offers to the US has continued over the past week. Futures offers from most sources have fallen again in the last week as trader sources indicate that mills in China, India and Taiwan are attempting to reengage potential US buyers as interest in futures has been almost non-existent over the last couple months. Both Chinese and Indian offer prices for HDG 0.012"x40.875" G30 and HDG 0.019" x 48" G90 are slowly declining, with most offers falling about $0.50 cwt. ($11/mt or $10/nt) since last week.  Meanwhile, Galvalume 0.019x41.5625 Gr80/AZ55 prices out of Taiwan have come down by as much as $1.50 cwt. ($33/mt or $30/nt) as previous offers at prices above US domestic spots received no interest.

The drops still don't put prices at low enough levels for most US buyers to make any major stock buys, but sporadic import orders have been placed in the last week. Traders also noted that their spot inventories have depleted in recent months and new prices are at "workable" levels to begin considering buying some position tons. However, because import offer prices are expected to fall further still in the next couple weeks, most buyers are holding off until it appears prices have bottomed.

**DDP loaded truck delivered into Houston