US HDG buyers resist import price increases

While some import hot dipped galvanized (HDG) and Galvalume sources have been trying to raise their offer prices to the US, uncertainty in the US domestic market is preventing those increases from taking hold. Trader sources explained that Indian mills have been indicating plans to increase prices over the last few weeks, following the lead of US domestic mills. However, with import interest and activity largely unexciting at the moment, they haven't official increased prices. But, if US domestic mills announce another price increase in the near future, India is likely to at least attempt to boost its own offer prices to the US.

Meanwhile, Mexican mills have also been trying to raise their prices with new orders, but US buyers haven't been receptive to higher prices. In particular, Mexico has tried to raise its HDG 0.012"x40.875" G30 offer prices above the current range of $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) DDP loaded truck delivered into Houston with little success, as some US buyers have even tried to attain prices below the current range. So for now, prices out of Mexico are likely to remain stable until spot prices in the US domestic market move--spots have been unchanged since mid-November.

**DDP loaded truck delivered into Houston