Stability in US import HDG prices to be short-lived

There has been little change in import offer prices to the US for most coated flat steel products, but an uptrend is on the horizon. The Galvalume market appears to be the strongest among coated flat steel products, with offer prices from two of the US' main import sources up in the last week. Mexican Galvalume 0.019x41.5625 Gr80/AZ55 prices are up $1.50 cwt. ($33/mt or $30/nt) in the last week to $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck delivered into Houston, although trader sources have said that Mexican mills have already been heard quoting $46.00 cwt. ($1,014/mt or $920/nt) DDP loaded truck delivered into Houston to some customers. Offer prices out of Taiwan are up, too, increasing $1.00 cwt. ($22/mt or $20/nt) to $43.50-$44.50 cwt. ($937-$981/mt or $850-$890/nt) DDP loaded truck in US Gulf ports. Taiwanese mills could try for another increase in the next couple weeks, but are likely to back down if orders don't follow.

Overall, import activity has improved in the last couple weeks, as rising US domestic prices have improved US buyers' confidence in imports. There isn't much hedge buying taking place just yet, as orders for futures wouldn't arrive until mid-Q4. As a result, import offer prices for HDG 0.012"x40.875" G30 and 0.019" x 48" G90 out of China and India are stable again in the last week, but prices out of both countries are anticipated to increase in the next couple weeks. Traders have said that both China and India will at least attempt a price increase, but are currently more concerned with getting orders.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston