Slide in US import HDG prices ceases

After months of steady week-on-week price declines, it appears that import hot dipped galvanized (HDG) and Galvalume coil offers to the US have finally bottomed. Even when US domestic spot prices began to firm about a month ago following mill-announced price increases, import offer prices out of India, China and Taiwan were still softening, as import demand remained slack. However, following a second round of domestic price increases, and now rumors of a third, it appears that import prices have finally reached a bottom. In the last couple weeks since futures prices last showed any movement, traders report Indian and Chinese mills have been booking well, particularly for HDG 0.012"x40.875" G30 and 0.019" x 48" G90. Bookings of the latter are especially strong on the US West Coast, where the import prices are at an even more significant discount to US domestic spots.

Despite more lively futures activity as of late, trader sources tell SteelOrbis that the offshore mills will have minimal success if they try and raise prices to follow in the US domestic price trend. Futures orders placed today would be for August production, and therefore late October/November arrival. Many US buyers remain too skeptical that US domestic prices will hold firm through year-end to book imports at prices anything less than a substantial discount to the US domestic market. Mexico, on the other hand, is following US domestic prices higher, with new offers up $1.00 cwt. ($22/mt or $20/nt) since last week.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston