Spot prices in the US domestic pre-painted galvanized iron (PPGI) market have been steadily rising in line with the flat-rolled price increases from domestic mills over the past two to three months with little-to-no pushback from buyers, but rapidly surging crude oil prices are now driving up the price of paint coating.
Major paint manufacturers for the PPGI market have recently issued a price increase of 6 to 12 percent effective April 1, citing an increase in raw material costs resulting from rising crude oil prices-which are now hovering at about $105 a barrel. For now, spot prices for white/light stone PPGI 26 gauge .0185 SMP AZ50 range from $74.00-$77.00 cwt. ($1,631-$1,698/mt or $1,480-$1,540/nt) ex-mill, with prices expected to rise in April when the coating increase takes effect.
While PPGI prices in the US domestic market are on an upward trend, some import offers have declined in recent weeks. Taiwanese offers of white/light stone PPGI 26 gauge .0185 SMP AZ50 have fallen approximately $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) since late February and are now being offered in the $71.25-$73.25 cwt. ($1,571-$1,615/mt or $1,425-$1,465/nt) duty-paid FOB loaded truck in US Gulf ports range, with some orders being placed as low as $70.00 cwt. ($1,543/mt or $1,400) duty-paid FOB loaded truck in US Gulf ports.
Elsewhere, Indian mills have been reportedly "feeling out the US market" according to one southern trader, and may be looking to make a competitive offer in the coming weeks, although tonnage available will be limited as Indian mills have been focused on exports to the US of hot dipped galvanized (HDG) 0.012"x40.875" G30 and Galvalume 0.019x41.5625 Gr80/AZ55.
South of the border, Mexican mills are offering white/light stone PPGI 26 gauge .0185 SMP AZ50 at $76.00-$77.00 cwt. ($1,676-$1,698/mt or $1,520-$1,540/nt) FOB loaded truck delivered into Houston ports with a few sporadic bookings being placed below the lower end of the range.