US HDG buyers show renewed interest in imports

With import offer prices to the US seemingly close to bottoming out and a recent price increase in the US domestic market, import inquiries have improved over the past week. Trader sources tell SteelOrbis that there have been more futures inquiries than anticipated over the past couple weeks. Already, Mexican mills have filled up hot dipped galvanized (HDG) 0.012"x40.875" G30 orders for August production and will likely await the US domestic price trend before offering for September. Chinese HDG 0.012"x40.875" G30 prices have fallen $1.00 cwt. ($22/mt or $20/nt) since last week to $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports into the same range as Indian prices. With Indian HDG coils US buyers' first offshore source, traders explained that Chinese prices have to be at or below Indian prices to attract orders.

As for HDG 0.019" x 48" G90, offers from India and China haven't moved in the last week, while Galvalume 0.019x41.5625 Gr80/AZ55 import prices are also stable but Taiwanese and Chinese prices remain too close to US domestic prices for most US buyers to consider the offers--prices could decline again in the next couple weeks given mediocre demand from the US and in the Far East finished steel market.

**DDP loaded truck delivered into Houston