High import inventories still a problem in US HDG market

High inventory levels coupled with lackluster order activity continues to be a problem for the US import hot dipped galvanized markets.  Trader sources continue to report that trial tons are being booked with offshore sources, such as Pakistan, UAE, Turkey and Vietnam, although “nothing significant has been booked just yet.”  

Brazilian mills continue to capitalize on their ability to ship hot dipped galvanized (HDG) and Galvalume coil to the US, although trader sources also report that supply is outpacing demand, and order activity, while steady, is not enough to offset tons that are already at the dock and on the water.

Import Galvalume offers to the US	Cwt.	Metric ton (mt)	Net ton (nt)	Change from last week
0.019x41.5625 Gr80/AZ55
Brazil*	$37-$39	$816-$838	$740-$760	neutral but flexible
Mexico	$37-$39	$816-$838	$740-$760	neutral but flexible
*DDP loaded truck in US Gulf ports