US HDG import price drops having little impact on activity

Import prices for hot dipped galvanized (HDG) and Galvalume coil offers to the US have come down again over the past week. Futures orders placed today wouldn't arrive in the US until August/September, making them too much of a risk for many customers. While some predict that an eventual turnaround in US domestic flat rolled spot prices could happen before then, sources tell SteelOrbis that such speculation is far from concrete enough to convince US buyers to book imports. Import prices, however, are on the decline and traders note increased inquiries now that prices have become marginally more attractive.

In particular, Chinese offer prices for 0.012"x40.875" G30 and 0.019" x 48" G90 have fallen $0.50 cwt. ($11/mt or $10/nt) in the last week to $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt) DDP loaded truck in US Gulf ports. Indian prices for the same products have remained stable since last week but are anticipated to follow Chinese prices down in the next week or two. As for Galvalume 0.019x41.5625 Gr80/AZ55, the only import offers gaining much traction are coming from Mexico, where prices have come down another $0.50 cwt. in the last week. Taiwanese prices are expected to drop soon as well, as current prices remain above US domestic spots.

**DDP loaded truck delivered into Houston