While US domestic hot-dipped galvanized (HDG) spot prices--as well as order activity--have been largely static in the last week, with discounted imports available, the neutral trend may begin to soon point downward.
Domestic flats mills haven't officially let HDG and Galvalume base spot prices fall below $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) ex-Midwest mill (unchanged from last week), but mills aren't getting their full asking prices either, at about $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) above current spot prices. SteelOrbis has heard of deals being cut on coating extras, however, and spot prices on HDG 0.012"x40.875" G30 have fallen $1.00 cwt. on the high end to $52.00-$53.00 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt) ex-Midwest mill, to be more competitive with import offers.
Hot rolled coil (HRC) prices are under the most pressure in the US domestic flats market, and may slip to $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex- Midwest mill by early July--about $1.00 cwt. below current spot prices--due to existing overcapacity and newly started blast furnaces ramping up at a time when demand is waning. One Gulf area distributor noted that the added capacity is simply "poor timing." If HRC spot prices do indeed fall, spot prices for cold rolled coil (CRC), and consequently HDG, will drop in tandem.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $43-$44 | $948-$970 | $860-$880 | neutral |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | ↓ $1.00 cwt. on high end |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | neutral |
| Galvalume | ||||
| ex-Midwest mill | $43-$44 | $948-$970 | $860-$880 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | neutral |
On the import side, all eyes are on China; domestic Chinese prices have been oscillating in the last couple weeks, but fell dramatically last week on languid demand levels. Consequently, traders informed SteelOrbis that there are some deals available below current sales prices in the US of $49.00-$50.00 cwt. ($1,080-$1,102//mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports for HDG 0.012"x40.875" G30.
Import order activity has been steady in the last couple weeks, which one East Coast trader commented is a major improvement from May. But, going forward, with prices expected to remain soft in the US domestic HDG market, that activity may once again begin to taper off.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $50-$51 | $1,102-$1,124 | $1,000-$1,020 | neutral |
| China* | $49-$50 | $1,080-$1,102 | $980-$1,000 | neutral |
| Mexico** | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $49.50-$50.50 | $1,091-$1,113 | $990-$1,010 | neutral |
| India* | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| Taiwan* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| Mexico** | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
**DDP loaded truck delivered into Houston