In the past month, US hot dipped galvanized (HDG) coil prices have moved up by approximately $40 /nt ($44 /mt or $2.00 cwt.), reflecting the domestic flat rolled mills' February price increases.
Accordingly, most domestic offers for 0.019" by 48" G90 items now range from $48.50 cwt. to $49.50 cwt. ($1,069 /mt to $1,091 /mt or $970 /nt to $990 /nt) FOB mill.
Most mills have closed their order books for February and have not yet opened up their books for March. ArcelorMittal last week announced a price increase of $50 /nt ($55 /mt or $2.50 cwt.) for March flat rolled deliveries, and many mills are reviewing the price increase announcement as well as the recent scrap price increase (busheling rose $70 /long ton this month) and are waiting to make their next move.
It is likely that the March price increase will be widespread, and, while it isn't a sure thing that the market will accept it in full, so far mills have been successful in pushing through all of the announced price increases. It is believed, though, that it may take a month or two to fully push through the March increase, and that there will not be an additional April price hike (unless the March increase is staggered to April). While steelmaking costs continue to rally, mills are well aware that flat rolled demand is still depressed and that if the domestic price gets too high, imports will start to look attractive to US buyers again.
Foreign mills are also holding back their galvanized coil offers for the US in light of the recent US price rises as well as their own raw material price increases. Import offers are ultimately expected to follow the US price increases, coming in at comparable numbers.
There are some lighter gauge (0.012 width) offers of Indian origin on the Gulf Coast, as the domestic mills don't offer much light gauge/narrow width material. The West Coast market, which typically receives offers for slightly heavier gauge items (0.014 or 0.016) is also seeing very few import offers currently, as major import sources like China and Taiwan are refraining from offering. When Taiwan and China come back with new offers, they are expected to be roughly $50 /nt higher than the previous level.
The domestic galvalume market has seen prices rise significantly in the past month, with offers for 26 gauge 0.019" by 41.5625/43", AZ55 galvalume items now ranging from $45.00 cwt. to $46.00 cwt. ($992 /mt to $1,014 /mt or $900 /nt to $920 /nt) FOB mill. New import offers for this item have also increased since last month. Taiwanese galvalume offers for the US now range from $49.00 cwt. to $50.00 cwt. ($1,080 /mt to $1,100 /mt or $980 /nt to $1,000 /nt) FOB, loaded truck, in US Gulf ports. Typical import sources for galvalume are Taiwan, South Korea, China, Brazil (which is currently out of the market), and Mexico. India will start offering later this spring.