US import HDG price slide likely to persist until activity picks up

Import offer prices from essentially all major offshore sources of coated flat steel products have been on the decline in the past month, and the trend is likely to continue. Expectedly, US customers have not been particularly keen on booking major import tons considering the orders wouldn't arrive until Q3. While demand levels in the US are stable, US domestic hot dipped galvanized (HDG) and Galvalume spot prices are not. Traders tell SteelOrbis that there is interest from customers, but the majority of buyers are hesitant to commit to a future order.

Additionally, a major pickup in booking activity isn't likely until it appears that import prices have at least reached bottom so customers are certain they're booking at the most competitive price level. In the last week, import CFR offer prices from China and India have declined slightly, and sales prices in the US are likely to follow by next week. Indian sales prices in the US for 0.012"x40.875" G30 are currently decent, and are likely to gain traction if they fall further. While import prices across the board are poised to fall, offer prices on Galvalume 0.019x41.5625 Gr80/AZ55 from Taiwan could see the largest decline. New Taiwanese offers are not out yet, but with previous prices well above US domestic spots, new futures prices could reflect a significant decline.

**DDP loaded truck delivered into Houston