Prices trend neutral for US domestic HDG

Lead times, while still ranging at approximately four to five weeks have softened slightly, with closer-to-four week delivery dates for new orders becoming increasingly prevalent.

"Demand remains steady, but it's still at a level below where current production levels are," commented a Midwest service center. "It's a matter of oversupply, plain and simple."

While bright spots, such as activity within the automotive sector, remain bright, the weak spots, such as construction, remain equally weak.  

But for now, people holding the purse strings will remain cautious, and will likely not contribute too much in terms of order activity for the next few weeks.  The US Census Bureau's report on New Residential Construction Statistics, due out this week, will serve as an indicator for potential demand within key end-use markets, as will current auto-sales statistics, however September's numbers will not be available until early next month.

For now, the forecast for US domestic HDG will remain neutral, mostly due to relative inactivity by buyers due to concerns that continued overproduction may contribute to price softening should construction and auto sales stats be unfavorable.  Ultimately, buyers fear that if prices are not going up, that they might begin to go down. 

In terms of imports, offshore offers have trended neutral since our last report, although previously seen import offers of Taiwanese Galvalume are no longer available.  Mexican offerings of coated steel have also trended sideways, although interest in imported steel remains weak.

*Mexican offers are FOB loaded truck US border states.

**Chinese, Indian, and offerings are duty-paid FOB loaded truck, US Gulf ports.