The most recently heard ex-Brazil offer to
US buyers for hot dipped
galvanized (HDG) G40 grade material continues to hold at $756/mt FOB, reflecting no change since our last report a week ago. This price point has been stable since mid-July, sources note, at which point Brazilian steelmakers increased export prices by eight percent. The July price increase was due to an uptick in demand for HDG coil within Brazil’s domestic market.
Offer prices to the
US from Turkish steelmakers for 0.012”x40.875” G30 coil have also trended sideways week-on-week; sources close to SteeOrbis have confirmed that Turkish 0.012”x40.875” G30 coil is still available at a
US sales price of $43-$44 cwt. ($948-$970/mt or $860-$880/nt)
DDP loaded truck in US Gulf coast ports, which is nearly $6.00 cwt. ($132/mt or $120/nt) below
US spot market prices. Interest in booking Turkish material continues to trend high, sources note, due to attractive price points.
In terms of ex-India HDG offer prices to the
US, exporters in that country have revised pricing downward by $10-$15/mt FOB, sources note, bringing the current offer price range to $620-$635/mt FOB. The price revision, however, has failed to garner much interest, as many
US buyers are concerned about potential price softening within the
US domestic market. At current, buyers are expected to remain cautious when it comes to booking futures until the direction of the
US spot market becomes clearer.