US import HDG still vulnerable to downtrend

The previously seen downtrend for US import hot dipped galvanized (HDG) and Galvalume coil markets seems to have finally stabilized, as prices are trending mostly sideways for the second week in a row.   The current ranges are still holding, according to SteelOrbis sources, although transactions at the top end of that span will soon be a thing of the past, as the most commonly reported transaction ranges are expected to soon narrow by $1.00 cwt. ($22/mt or $20/nt) on the top end.

“We’re at a place where prices have stopped falling and we’re experiencing a slow downward drift, at best,” according to trader sources.  Also of note is that more and more traders seem to be shying away from Chinese bookings, as the trade case rumors are growing louder by the moment.

Inventories, however, remain pretty high at both service centers and at the ports; that being said, there aren’t too many people out there who are booking anything of significance.