Rising US import HDG prices continue to deter activity

Even though US domestic mills announced price increases last week, spot prices remain only barely stable, making rising import prices of little interest. Chinese offer prices  to the US have continued to increase over the last week, despite a general lack of interest in futures prices higher than US domestic spots. Chinese Galvalume 0.019x41.5625 Gr80/AZ55 offer prices in particular have shot up drastically in the last week, with prices now in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports. While the increase is largely a reaction to higher raw material costs in the Far East, trader sources indicated that the new range will not hold, and Chinese mills are likely to lower prices, or at least cut deals.

Meanwhile, Mexican mills are gaining some traction on their Galvalume offers to the US, but only on the lower end of the $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck delivered into Houston range. Indian mills have also raised their prices for HDG 0.019" x 48" G90 to the US by $1.00 cwt. ($22/mt or $20/nt) to $43.00-$45.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports. While trader sources report a steady flow of the "usual" orders, overall futures activity for Indian and Chinese HDG coil is weak and unlikely to improve unless US domestic spot prices do first.

**DDP loaded truck delivered into Houston