US domestic hot dipped galvanized (HDG) base price transaction ranges softened since our last report a week ago, with price corrections seen among all segments of reported products.
With construction activity remaining slow-to-sluggish, order placement for coated products, in general, continues to remain below optimal levels-sustaining the softening trend seen in recent weeks. Production levels remain above those which would better match current supply-demand levels, and lead times, last week reported at four to six weeks, have narrowed to a span of four to five. The bottom line is that until mills' modify their output, based on current economic conditions, transaction price softening will continue.
While the below transaction price ranges represent those most commonly offered, it should be noted that deals slightly below these ranges may be available for certain orders.
HDG base spot transaction prices have softened by another $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, with offers now being seen in the approximate range of $36.00 cwt. to $38.00 cwt. ($794/mt to $838/mt or $720/nt to $760/nt), ex-Midwest mills.
0.012" x 40.875" G30 (0.30 mm x 1.04 m) has also decreased by about $1.50 cwt. ($33/mt or $30/nt) in the past week. Offers for this product are now being reported in the approximate range of $46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt), ex-Midwest mills.
Offerings for 0.019" x 48" G90 (0.48 mm x 1.219 m) have also dipped by about $0.50 cwt. ($11/mt or $10/nt) since our last report a week ago and can now be found in the approximate range of 46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt), ex-Midwest mills.
Shifting focus to Galvalume coil, transaction prices have softened approximately $1.00 cwt. ($22/mt or $20/nt) since our last report and are now being found in the approximate range of $36.00 cwt. to $38.00 cwt. ($794/mt to $838/mt or $720/nt to $760/nt), ex-Midwest mills.
Offers for 0.019" x 41.5625" Gr80/AZ55, have also remained softened approximately $1.00 cwt. ($22/mt or $20/nt) and are now being seen in the approximate range of $48.00 cwt. to $50.00 cwt. ($1,058/mt to $1,102/mt or $960/nt to $1,000/nt), ex-Midwest mills.
As far as imports go, the Chinese government has announced it will be removing value added tax (VAT) rebates for certain steel commodities, which, according to one trader, will position them to begin offering more aggressive pricing for coated products to the US, because coated export steel products will remain unaffected by this change.
But most traders believe this will not have much of an impact. "If they're as good as, or a buck cheaper, why would you take a winger for futures while domestic is falling?" While it's expected that some bookings will take place, though, the anticipation is that the tonnage will not be significant.
Import HDG offers from India have also declined since our last report a week ago, indicating a strong willingness to maintain a competitive playing field against China for these particular products. As previously reported, although prices are ticking downward, interest based on economic factors within the US domestic market, interest remains slight.
Offers for HDG 0.012" x 40.875" G30 (0.30 mm x 1.04 m), out of India have softened approximately $1.00 cwt. ($22/mt or $20/nt) since our last report and are now being seen in the approximate range of $45.00 cwt. to $47.00 cwt. ($992/mt to $1,036/mt or $900/nt to $940/nt), FOB loaded truck US Gulf ports. Offerings for that same product out of China, though, have remained neutral since last week, and continue to be seen in the approximate range of $44.00 cwt. to $46.00 cwt. ($970/mt to $1,014/mt or $880/nt to $920/nt), FOB loaded truck US Gulf ports.
Looking to HDG 0.019" x 48" G90 (0.48 mm x 1.219 m), offers out of India have softened by approximately $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, and are now being seen in the approximate range of $45.00 cwt. to $47.00 cwt. ($992/mt to $1,036/mt or $900/nt to $940/nt), FOB loaded truck US Gulf ports. Offerings for this same product out of China, however, have remained neutral, and continue to be seen in the approximate range of $46.00 cwt. to $48.00 cwt. ($1,014/mt to $1,058/mt or $920/nt to $960/nt), FOB loaded truck US Gulf ports.
Switching focus to Galvalume, Chinese offerings for this product have also softened, and as reported last week, India and Taiwan are continuing to offer on a "bid basis" with mills asking those who may have an interest in this product to submit proposed pricing models for review.
Chinese offerings for Galvalume 0.019" x 41.4625" Gr80/AZ55p have softened by about $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, and are now being seen in the approximate range of $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt), FOB loaded truck US Gulf ports.