US domestic producers of hot dipped galvanized (HDG) and Galvalume coil are just about at a point where they are price matching offshore offers, and many are questioning whether it’s just a matter of time before official trade case action is set in motion. (US domestic Galvalume 0.019x41.5625 Gr80/AZ55 prices are still trending about $1.00 cwt. ($22/mt or $20/nt) above imports, but SteelOrbis sources say that number is in no way firm.) The speculation is similar to that of what’s happening within the cold rolled coil (CRC) market- that US mills may hold off until the end of the first quarter. Prices are coming down and margins are being squeezed far more now than they were in Q4 2014, which could bode well when and if they try to make a case.
In terms of import offers, Chinese offers for both 0.012”x40.875” G30 and 0.019”x48” G90 have once again shown signs of week-on-week softening. “China is going to keep dropping their prices until someone says stop,” according to one trader source, “and US producers definitely want to see import coated products gone more than they do CRC.”
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012”x40.875” G30 | ||||
| China* | $37.50-$39.00 | $826-$860 | $750-$780 | down $1.00 cwt. |
| India* | $39-$41 | $860-$904 | $780-$820 | neutral |
| 0.019”x48” G90 | ||||
| China* | $36.50-$37.50 | $804-$826 | $730-$750 | down $1.00 cwt. |
| India* | $41-$42 | $860-$950 | $820-$860 | neutral |
| Import Galvalume offers to the US | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| China* | $41-$42 | $860-$950 | $820-$860 | neutral |
| India* | $41.00-$43.00 | $860-$950 | $820-$860 | neutral |
| Brazil* | $40.50-$41.50 | $892-$914 | $810-830 | neutral |
| Korea* | $41.00-$43.00 | $860-$950 | $820-$860 | neutral |
| Taiwan* | $41.00-$43.00 | $860-$950 | $820-$860 | neutral |
| Mexico | $40.50-$42.00 | $893-$926 | $810-$840 | neutral |
| *DDP loaded truck in US Gulf ports |