Most US import HDG prices likely to drop amid sluggish US interest

Import activity has been expectedly quiet over the last week and south of the border, Mexican mills' order entry rates from the US have slowed significantly. While Mexican mills are trying to keep prices steady, they will likely reduce offer prices in the next couple weeks, particularly for Galvalume 0.019x41.5625 Gr80/AZ55 products, as Mexican sales prices in the US are now only about $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) below US domestic.

Offshore, the US' major offshore hot dipped galvanized (HDG) and Galvalume sources such as China, Taiwan and India aren't expected to issue new prices until later this week. While traders anticipate that Chinese mills will try and keep official prices level but then be willing to negotiate, Indian and Taiwanese mills have been discussing possible increases in offer prices--a move that could quickly erase any lingering US-buyer interest.

Meanwhile, import orders placed late last year are rapidly pouring into US ports--US Steel Import Monitoring and Analysis (SIMA) data indicate that 75,996 mt  (license data) of HDG sheet and strip has arrived this month as of only February 10, compared to 112,849 mt (license data) for all of January, and March volumes are expected to be even higher.

**DDP loaded truck delivered into Houston