As US domestic hot dipped galvanized (HDG) prices continue falling, interest in imports is waning, even as offshore offer prices have dropped again.
US spot prices for HDG and Galvalume have slipped again this week, and are showing no sign of leveling out just yet. US domestic spot prices for HDG and Galvalume base are down $1.00 cwt ($22/mt or $20/nt) in the last week to $44.00-$46.00 cwt. ($970-$1,014/mt or $880-$920/nt) ex-Midwest mill. Spot prices on extras have fallen as well to $55.00-$57.00 cwt. ($1,213-$1,257/mt or $1,100-$1,140/nt) ex-Midwest mill on HDG 0.019"x48" G90 and Galvalume 0.019x41.5625 Gr80/AZ55. Spot prices on HDG 0.012"x40.875" G30 are now $54.00-$56.00 cwt. ($1,190-$1,235/mt or $1,080-$1,120/nt) ex-Midwest mill-also down $1.00 cwt. in the last week.
Deals as much as $1.00 cwt. below the above spot prices are readily available for buyers of significant tonnage, and domestic mills continue to cut deals on extras in order to uphold spot prices on base products like cold rolled coil (CRC). SteelOrbis has learned that mills are even more aggressive to fill order books, which are still in early-to-mid-June.
Still, most US buyers are reluctant to even place domestic orders, knowing prices will be lower by the time orders placed today arrive. US domestic flats prices are poised to remain soft through at least the rest of Q2, with no clear indication yet of how far they'll tumble. As a result, interest in placing an order offshore--about three months out--has been stalling.
Offshore sources have reduced offer prices to the US once again in hopes of gaining a few orders, but the $4.00-$5.00 cwt. ($88-$110/mt or $80-$100/nt) difference between US domestic and some offshore offers isn't wide enough for most to take the risk. Chinese offer prices to the US are the most competitive at $49.50-$50.50 cwt. ($1,091-$1,113/mt or $990-$1,010/nt) duty-paid FOB loaded truck in US Gulf ports on HDG 0.012"x40.875" G30 and 0.019" x48" G90-down $0.50 cwt. ($11/mt or $10/nt) from last week. Chinese offers of Galvalume 0.019x41.5625 Gr80/AZ55 have dropped $1.00 cwt. since last week to $52.00-$53.00 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt) duty-paid FOB loaded truck in US Gulf ports.
Other HDG offers are available from Indian, Taiwanese and Mexican mills as well. For HDG 0.012"x40.875" G30, Indian offers are still in the range of $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) duty-paid FOB loaded truck in US Gulf ports, and Mexican offers are $51.00-$53.00 cwt. ($1,124-$1,168/mt or $1,020-$1,060/nt) FOB loaded truck delivered into Houston customers' yards.
Both Indian and Taiwanese offers for HDG 0.019" x 48" G90 have stayed neutral since last week at $52.00-$54.00 cwt. ($1,146-$1,190/mt or $1,040-$1,080/nt), and $55.00-$56.00 cwt. ($1,213-$1,235/mt or $1,100-$1,120/nt), respectively, both duty-paid FOB loaded truck in US Gulf ports.
Indian and Taiwanese offer prices to the US for Galvalume 0.019x41.5625 Gr80/AZ55 have both fallen since last week to $52.00-$53.00 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt) FOB loaded truck in US Gulf ports. Taiwanese offers are down $2.00 cwt. ($44/mt or $40/nt) in the last week while Indian offer prices are down $1.00 cwt. Mexican offers to the US have also fallen $1.00 cwt. and are now $52.00-$53.00 cwt. FOB loaded truck delivered into Houston.