There is still no word from domestic flat rolled mills as to what September price announcements will bring; however, lately, domestic hot dip galvanized (HDG) spot prices seem to be slipping, suggesting that an official price increase from domestic mills might have some trouble gaining acceptance in the market.
No official price decrease has been announced for HDG products; however, over the last couple of weeks, spot prices have been showing some weakness. Mills are standing by their published prices for August, although many customers are commenting that the mills are being flexible with their prices and that deals are being made. Buyers have said that some domestic mills are willing to negotiate their published price if the timing is right.
This market dynamic is an interesting one, as two or three months ago the opposite was taking place. At that time, mills' tons disappeared as quickly as they were produced, whereas buyers are now saying that tons are readily available.
Currently, buyers can find domestic HDG 0.019" x 48" G90 spot prices ranging from $68.00 cwt. to $71.00 cwt. ($1,499 /mt to $1,565 /mt or $1,360 /nt to $1,420 /nt) ex-mill Midwest. Prices on the West Coast are approximately $3.00 cwt. ($66 /mt or $60 nt) greater.
With busheling scrap prices increasing approximately $100 /lt this month, it is expected that flat rolled mills will try to pass on at least some of the raw material costs to customers, but with HDG products being the weakest out of the flat rolled family, it is not too likely that any increase to HDG prices will be accepted.
On the import side, offers are still available, but the numbers are not very attractive. With import offers pricing out at numbers similar to or higher than domestic numbers, many buyers are opting to buy from the domestics instead.
Taiwan is offering HDG 0.019" x 48" G90 to the US, ranging from $72.00 cwt. to $74.00 cwt. ($1,587 /mt to $1,631 /mt or $1,440 /nt to $1,480 /nt) FOB loaded truck Gulf Coast ports. Prices are approximately $1.00 cwt. ($22 /mt or $20 /nt) lower delivered to the West Coast.
Offerings from China for HDG 0.019" x 48" G90 are mostly comparable to the Taiwanese offers. Chinese offers are ranging from $71.00 cwt. to $73.00 cwt. ($1,565 /mt to $1,609 /mt or $1,420 /nt to $1,460 /nt) FOB loaded truck West Coast ports.
Chinese offerings for HDG sized 0.028" x 48" G40 are ranging from $64.00 cwt. to $66.00 cwt. ($1,411 /mt to $1,455 /mt or $1,280 /nt to $1,320 /nt) FOB loaded truck West Coast ports.
Offers from India for 0.012" by 40.875" G30 have remained at the same levels that we reported two weeks ago. There are not many takers for these offers, which range from $72.00 cwt. to $74.00 cwt. ($1,587 /mt to $1,631 /mt or $1,440 /nt to $1,480 /nt) FOB loaded truck Gulf ports, for October deliveries.
On the galvalume side of the market, for 0.019" by 48" AZ55 items, domestics are ranging from $72.00 cwt. to $74.00 cwt. ($1,587 /mt to $1,631 /mt or $1,440 /nt to $1,480 /nt) FOB mill. Although the galvalume market is currently strong in the US, thanks to the commercial construction industry, the outlook is not very strong, and therefore buyers are commenting that, just as for HDG products, galvalume prices may be negotiable also. As for imports, Taiwanese offers are still in the range of $72.00 cwt. to $74.00 cwt. ($1,587 /mt to $1,631 /mt or $1,440 /nt to $1,480 /nt) FOB loaded truck Gulf and West Coast. Offering prices from India are similar to those of the Taiwanese mills.