US import HDG prices could soon drop

Tuesday, 15 May 2012 02:11:03 (GMT+3)   |  

After months of little-to-no change in import offer prices to the US, offshore mills are beginning to express willingness to negotiate prices lower. No significant decreases have been announced just yet, but trader sources tell SteelOrbis that hot dipped galvanized (HDG) and Galvalume offer prices from Taiwan and China in particularly are slowly sliding and could fall sooner rather than later. Domestic demand levels in the Far East are still depressed, and with little interest in imports from US buyers for over a month now due to softening US spot prices, offshore mills will need to widen the gap between their own offer prices and prices in the US in order to boost futures bookings.

It is not yet certain exactly how much prices could drop, but US buyer sources have told SteelOrbis that the disparity may need to increase substantially from the current $1.00-$3.00 cwt. ($22-$66/mt or $20-$60/nt) margin for them to place any significant offshore orders. As for Mexico, mills have been making deals when necessary to fill order books; however, with a substantial decrease in US domestic spot prices in the last week, and rumored price declines from offshore, Mexican sales prices in the US could also drop over the next few weeks.

Import HDG offers to the US Cwt. Metric ton (mt) Net ton (nt) Change from last week
         
0.012"x40.875" G30        
India* $46-$47 $1,014-$1,036 $920-$940 neutral
China* $45-$46 $992-$1,014 $900-$920 neutral
Mexico** $45-$46 $992-$1,014 $900-$920 neutral
         
0.019" x 48" G90         
China* $47-$48 $1,036-$1,058 $940-$960 neutral
India* $47-$48 $1,036-$1,058 $940-$960 neutral
Taiwan* $48-$49 $1,058-$1,080 $960-$980 neutral
         
Import Galvalume offers to the US         
0.019x41.5625 Gr80/AZ55        
Taiwan* $49-$50 $1,080-$1,102 $980-$1,000 neutral
Mexico** $46.50-$47.50 $1,025-$1,047 $930-$950 neutral
China* $49-$50 $1,080-$1,102 $980-$1,000 neutral
*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston


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