Import concerns grow prevalent in US HDG market

US domestic spot prices for coated flat steel are stable since last week, but whether that trend sustains is now up for debate. Since last week, domestic hot dipped galvanized (HDG) and Galvalume coil base prices have remained at previously reported levels. HDG base is still $37.00-$37.50 cwt. ($816-$827/mt or $740-$750/nt) ex-Midwest mill, while Galvalume coil base prices are $37.00-$38.00 cwt. ($816-$838/mt or $740¬-$760/nt) ex-Midwest mill. A few deals on certain grades with more import competition have come under slight pressure over the last week as prices for larger orders have drifted toward the low end of the below ranges.

Import arrivals in September and October are anticipated to reflect a noticeable uptick from arrivals during the summer. These arrivals could dampen US domestic mills' price gains over the past three months--and this anticipation has slowed purchasing activity a bit over the last week. US Steel Marketing and Analysis (SIMA) data show that in July, 118,493 mt (preliminary census data) of HDG sheet and strip arrived, and August numbers are indicative of an upward trend. As of August 27, license data show 139,325 mt hitting US ports. Most notable is the jump in imports scheduled to arrive from India: In July, the US imported 5,184 mt of HDG, compared to 25,920 mt in August.