US HDG import market firm following price increases

Import activity in the US for coated flat steel products is not robust, but it has been steady, resulting in firm and even increasing offer prices to the US. For the most part, US buyers are sticking to US domestic mills for commodity-grade products, but continue to turn to still attractively-priced imports to supplement inventories and for niche material. Indian offer prices for HDG 0.012"x40.875" G30 are stable at $41.00-$42.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US Gulf ports, and are likely to stay that way for at least a few more weeks. Indian mills have received plenty of orders at existing prices, therefore finding no reason to offer discounts.

Chinese offer prices for HDG 0.012"x40.875" G30 and 0.019" x 48" G90 are also holding firm, with mills already threatening to increase prices again sooner rather than later. How those increases go over with customers is not yet clear--lead times have moved into 2014, but US domestic spot prices are faltering. As for Galvalume, Chinese offers for 0.019x41.5625 Gr80/AZ55 are unchanged in the last week and remain too high for serious consideration since offers from India and Taiwan are well below. Taiwanese mills have closed offers for October production, with prices for November production anticipated to be higher, as hot rolled coil (HRC) prices in the Far East are on the rise.