While US domestic hot dipped galvanized (HDG) and Galvalume spot prices are all still softening, the pace of the decline is varying between products.
Domestic HDG and Galvalume spot prices stayed neutral last week, but have slumped dramatically since. HDG base spot prices dropped $1.50 cwt. ($33/mt or $30/nt) in the last week to $37.50-$39.50 cwt. ($827-$871/mt or $750-$790/nt) ex-Midwest mill. HDG 0.019"x48" G90 spot prices have fallen by about the same margin, but HDG 0.012"x40.875" G30 spot prices ticked down just $0.50 cwt. ($11/mt or $10/nt) since last week after falling more substantially throughout July. The downtrend is mixed for domestic Galvalume as well; base prices edged $1.00 cwt. ($22/mt or $20/nt) down on the low end to $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) ex-Midwest mill, while Galvalume 0.019x41.5625 Gr80/AZ55 fell $1.00 cwt.
Overall demand for flat steel products is paltry at the moment, but the varied price softening between assorted HDG and Galvalume products is a result of added activity, and fewer producers, for certain niche products like HDG 0.012"x40.875" G30, while HDG 0.019"x48" G90 is more commonly available at domestic mills. Nonetheless, regardless of this week's scattered trend, all HDG and Galvalume spot prices are expected to continue moving lower in the next week, unless buying activity picks up considerably.
But sources tell SteelOrbis that the little confidence that they had in the market "was shot" in the last few days as talks of the possibility of a double-dip recession in the US economy dominated local and national news: the DOW Jones plummeted 512 points (over 4 percent) Thursday, and then fell another 203 (nearly 2 percent) Friday to the lowest level since December 2008. Stocks for major steel companies like Nucor, US Steel, Steel Dynamics and AK Steel also slumped anywhere from 6 to as much as 14 percent Thursday. Therefore, any move to restock low HDG inventories isn't likely to occur just yet--not until the trend of domestic flat-rolled steel prices, which constantly ride on the heels of the volatile US economy, becomes more certain.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $37.50-$39.50 | $827-$871 | $750-$790 | ↓ $1.50 cwt. |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $48.50-$49.50 | $1,069-$1,091 | $970-$990 | ↓ $0.50 cwt. |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $48.50-$50.50 | $1,069-$1,113 | $970-$1,010 | ↓ $1.50 cwt. on low end |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $39-$41 | $860-$904 | $780-$820 | ↓ $1.00 cwt. on low end |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $49-$50 | $1,080-$1,102 | $980-$1,000 | ↓ $1.00 cwt. |
As for imports, both offshore and Mexican prices for the US have not moved in the last week, and US interest in them is stagnant, as well. Traders have indicated that most offshore mills are not trying to "chase down US prices," and would rather wait for the US market trend to stabilize than drastically cut offer prices for the time being.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| China* | $48.50-$49.50 | $1,069-$1,091 | $970-$990 | neutral |
| Mexico** | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $48.50-$49.50 | $1,069-$1,091 | $970-$990 | neutral |
| India* | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| Mexico** | $48-$49 | $1,058-$1,080 | $960-$980 | neutral |
| Taiwan*** | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | newly offered |
| Import Galvalume offers to the US | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| Taiwan* | $50.50-$51.50 | $1,113-$1,135 | $1,010-$1,030 | neutral |
| Mexico** | $49-$50 | $1,080-$1,102 | $980-$1000 | neutral |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| India* | $53-$54 | $1,168-$1,190 | $1,060-$1,080 | neutral |
**DDP loaded truck delivered into Houston
***DDP loaded truck in US West Coast ports