US HDG import price declines show no signs of slowing

Even after months of declines, and import coated flat steel offer prices to the US falling well below US domestic spot prices, it doesn't appear that foreign mills are finished slashing prices just yet. China has been leading the charge in terms of cutting prices, on the back of perpetual declines in the domestic Chinese market and still somewhat decent demand for import HDG in the US. While Chinese  HDG 0.012"x40.875" G30 and HDG 0.019" x 48" G90 are unchanged since last week in the range of $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) and $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt), respectively, both DDP loaded truck in US Gulf ports, a few second tier mills in the region have already dropped prices  below those levels and others are likely to lower offers in the next week or two. Indian mills have tried to stand tough in the face of falling Chinese prices, but traders say they are trying to convince Indian mills to drop prices as well. Although US buyers generally prefer to order HDG from India, with the disparity between Indian and Chinese offers widening, some have switched over to China to fulfill some orders.

Chinese price cuts are also taking a toll on Taiwanese Galvalume 0.019x41.5625 Gr80/AZ55 offer prices to the US, which fell another $1.50 cwt. ($33/mt or $30/nt) in the past week to $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports. Meanwhile, Mexican mills have been pushing more Galvalume rather than HDG, according to trader sources, dropping prices $1.00 cwt. ($22/mt or $20/nt) since last week to $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck in US Gulf ports.

**DDP loaded truck delivered into Houston