Offshore HDG mills aim for price increase despite minimal US interest

Even in the face of minimal interest from US buyers, both Chinese and Indian mills have raised their hot dipped galvanized (HDG) offer prices. Indian mills have increased their HDG CFR offer prices to the US by approximately $10/mt in the last week. However, trader sources say that because no orders have been placed at the new numbers, it's not certain yet if Indian mills will insist on the increase or allow customers to place orders at previous prices in order to garner orders. For now, it may still be possible to place HDG 0.012"x40.875" G30 and 0.019" x 48" G90 orders at previous prices, especially for a firm decent-sized order.

Chinese mills have also officially increased CFR offer prices by $10/mt in the last couple days, but the increase comes just as a few Chinese mills had actually let previous offer prices dip by $10/mt. As a result, the general offer price ranges for HDG out of China have not officially moved, but are fluctuating within the current ranges depending on which Chinese mill a customer orders from. However, if US domestic prices begin trending upward again and Indian mills gain traction with their latest price increase, Chinese mills will likely push their own latest increase through in full. Additionally, in the absence of Galvalume 0.019x41.5625 Gr80/AZ55 offers from Taiwan and Korea, US traders are now looking to China, although Chinese offer prices are about $1.00 cwt. ($22/mt or $20/nt) higher than the most recent Korean and Taiwanese prices.

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