Import HDG offers providing little incentive to US buyers

While there is a decent spread between US domestic spot prices for coated flat steel products and import offer prices to the US, import activity remains limited. Traders report that the "the phone lines have been extremely quiet" so far in the New Year, with the exception of the "usual" orders. Despite the $2.00-$4.00 cwt. ($44-$88/mt or $40-$80/nt) disparity between import and US domestic spots, with import delivery dates into Q2 and the US domestic market's long term trend uncertain, customers aren't willing to place major tons offshore.

Additionally, trader sources explained that offer prices out of China and Taiwan could soon be on the rise on account of increasing raw material prices--both iron ore prices in the Far East and export scrap prices off the US West Coast. If import hot dipped galvanized (HDG) and Galvalume prices do increase, it will likely further diminish US buyers' interest in booking futures, especially if US domestic spots don't exhibit firming or long term stability. Already, import arrivals into the US have slowed due to minimal buying activity last fall. US Steel Import Monitoring and Analysis (SIMA) data show 110,368 mt (license data) of sheets and strip--hot dipped galvanized arrived into the US in December, down from between 150,000-170,000 mt arriving in July through November.

**DDP loaded truck delivered into Houston