Interest in US import HDG bookings remains tepid

US import HDG futures prices from Indian mills may have fallen by an additional $20/mt CFR since our last report a week ago, to approximately $640-$660/mt FOB, but US domestic buyers are showing reluctance when it comes to booking offshore until short-term pricing trends within the domestic market become clearer.

At current, US HDG prices are trending sideways but buyers are concerned that domestic coated steel prices, which increased rapidly during the first half of the year, may soon be vulnerable to correction.

US import HDG tonnages from Brazilian steelmakers have also seen month-on-month declines.  According to the ministry of development, industry and foreign trade (MDIC), during the month of April, Brazilian steelmakers exported 51,600 mt of HDG products to the US.  In May, Brazil exported 27,200 mt, sources note.

Brazil-based sources have indicated that reduced production capacity within their domestic market has created a shortage of HDG products, adding that mills in that country are currently most-focused on serving their domestic market.

In terms of other prices, theUS sales price for US import 0.012”x40.875” G30 coil from Pakistan and the United Arab Emirates (UAE) are still being heard at approximately $42-$44 cwt. ($926-$970/mt or $840-$880/nt), but trader sources say they believe that these price points may be revised downward by the end of the week.