US import HDG price downtrend shows no signs of slowing

Rapid declines in domestic Chinese flat rolled prices are driving the majority of import offer prices to the US lower. Plummeting iron ore costs and tepid demand in the Far East has sent Chinese domestic flat rolled prices on a downward spiral that appears poised to continue. Additionally, there are multiple Chinese mills offering hot dipped galvanized (HDG) coil to the US at prices that vary drastically depending on whether it's an established tier one mill that normally exports to the US or a smaller mill fighting for market share. On average, though, Chinese HDG 0.019" x 48" G90 sales prices in the US are now between $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) DDP loaded truck in US Gulf ports, down $2.00 cwt. ($44/mt or $40/nt) since last week, and trader sources fully anticipate that prices will likely continue to drop over the next couple weeks.

While India is most US buyers' first choice for offshore HDG, particularly HDG 0.012"x40.875" G30, Indian mills have little choice but to follow Chinese prices lower or risk losing their own market share. As a result, while Indian offer price ranges are unchanged since last week, prices are sliding and the range will likely drop by next week. As for Galvalume 0.019x41.5625 Gr80/AZ55, Taiwanese offer prices haven't officially moved from the range of $44.50-$$45.00 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports since last week, but Taiwanese mills have indicated a willingness to go about $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt) lower.

*DDP loaded truck in US Gulf ports

** DDP loaded truck delivered into Houston