Domestic hot dipped galvanized (HDG) offers, spot prices and activity have remained relatively neutral in the past week; but as US mills roll out the next round of price increases and scrap pricing is going gangbuster, transaction prices for galvanized coils are expected to once again be on the rise.
This week, most domestic HDG base prices continue to range at approximately $37.00 cwt. to $38.00 cwt. ($816/mt to $838/mt or $740/nt to $760/nt) ex-Midwest mills, while offers of 0.019" x 48" G90 (0.48 mm x 1.219 m) have also remained stable and continue to be found from around $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) ex-Midwest mills.
Meanwhile, domestic offers of 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have also trended neutral and continue to be priced around $49.00 cwt. to $51.00 cwt. ($1,080/mt to $1,124/mt or $980/nt to $1,020/nt) ex-Midwest mills. Domestic Galvalume base sizes are also still being offered at approximately $37.00 cwt. to $38.00 cwt. ($816/mt to $838/mt or $740/nt to $760/nt) while offers for 0.019" x 41.5625" Gr80/AZ55 continue to be seen around $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) ex-Midwest mills.
With AK Steel's $40/nt ($2.00 cwt. or $44/mt) announced increase and the anticipated announcement from Nucor still on the horizon, HDG spot prices will continue to tick up alongside other offerings in the flats market. Also, the busheling prices registered a significant $70/lt increase in March. This will affect the minimill offer prices as well. Inventory levels remain low and the sellers' market atmosphere continues to prevail, meaning service centers are in a position where they're forced to buy at new pricing levels. Buyers still insist that the end user demand remains weak. If that's the case, as soon as inventories build up and scrap prices retreat, gains made in the last several months may be lost. But for now, the domestic pricing trend remains clearly up.
On the import side, Chinese offers for 0.019" G90 continue to be seen at $45.00 cwt. to $46.00 cwt. ($992/mt to $1,014/mt or $900/nt to $920/nt), duty-paid, FOB loaded truck in US Gulf ports. Yet with long lead times and vast uncertainty in the domestic market, traders are largely averse to purchasing at these prices. The import market may begin to garner a bit more interest in upcoming weeks, though, as domestic offers maintain their course of upswing.
Indian import indications for 0.019" G90 have also trended neutral, with offers remaining at $46.00 cwt. to $47.00 cwt. ($1,014/mt to $1,036/mt or $920/nt to $940/nt) FOB loaded truck in US Gulf ports. Taiwanese offers of 0.019" G90 to the US are unchanged since last week, and continue to be seen at $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt), duty-paid, FOB loaded truck in US Gulf ports.
On the light gauges, 0.012" G30 from India have trended sideways and continue to range from around $46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt) while most Taiwanese offers of the same product continue to be seen at $47.50 cwt. to $48.50 cwt. ($1,047/mt to $1,069/mt or $950/nt to $970/nt), both duty-paid, FOB loaded truck in US Gulf ports. Taiwanese Galvalume is also holding neutral at approximately $47.50 cwt. to $48.50/cwt ($1,047/mt to $1,069/mt or $950/nt to $970/nt), duty-paid, FOB loaded truck in US Gulf ports, while Mexico continues to offer Galvalume to the US at a range of $48.00 cwt. to $49.00 cwt. ($1,058/mt to $1,080/mt or $960/nt to $980/nt) delivered to US border states.
License data from the US Steel Import Monitoring and Analysis System (SIMA) demonstrate that the total import tonnage of HDG has decreased from 87,202 mt (census data) in January to 83,662 mt in February, with leading importer Canada having decreased imports from 39,304 mt in January to 30,475 mt in February. The only other sources to import over 1,000 mt of HDG to the US were India, at 25,634 mt; Mexico, at 10,213 mt; Korea, at 5,498 mt; China, at 4,985 mt; Taiwan, at 2,933 mt; and the Netherlands, at 1,696 mt.