Hot dipped galvanized (HDG) spot prices in the US are softening again, and are likely to continue falling through the end of June and into July.
US domestic HDG base spot prices have slipped $0.50 cwt. ($11/mt or $10/nt) in the last week to $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) ex-Midwest mill and spot prices don't appear to have hit bottom just yet. Galvalume spot prices have held up since last week as a result of late-April tornados in the US Southeast; sources tell SteelOrbis that the slowed production and rebuilding efforts in areas like Alabama and Mississippi have given the spot market for Galvalume a slight boost. Still, within the next week or two, Galvalume spot prices will probably soften as well.
Demand for HDG is still relatively stable domestically, but recent data from the Metals Service Center Institute (MSCI) show that service center inventories are balanced at a 2.2-months supply and buyers are making few domestic purchases in today's soft market. However, traders report that US-buyer interest in offshore purchases has shown a slight uptick in the last week, as import orders placed today are due for arrival in mid- to late-September, by which time many industry insiders are predicting US HDG prices will have bottomed and already begun trending back up.
On the US West Coast, US domestic HDG 0.012"x40.875" G30 spot prices are about $2.00 cwt. ($44/mt or $40/nt) above those in the US Midwest, making some import offers, particularly from China especially attractive.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $42.50-$43.50 | $937-$959 | $850-$870 | ↓ $0.50 cwt. |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | ↓ $1.00 cwt. on low end |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $54-$55 | $1,190-$1,213 | $1,080-$1,100 | neutral |
| US domestic Galvalume base price | ||||
| 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 |
Chinese offer prices are in the range of $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports, with prices just above for delivery into the US West Coast. Traders tell SteelOrbis that a number of Indian HDG 0.012"x40.875" G30 have been booked in the range of $49.00-$50.00 cwt. ($1,080-$1,102/mt or $980-$1,000/nt) DDP loaded truck in US Gulf ports--down $1.00 cwt. ($22/mt or $20/nt) since last week.
| Import HDG offers to the US | Cwt. | Metric ton (mt) | Net ton (nt) | Change from last week |
| 0.012"x40.875" G30 | ||||
| India* | $49-$50 | $1,080-$1,102 | $980-$1000 | ↓ $1.00 cwt. |
| China* | $49-$50 | $1,080-$1,102 | $980-$1,000 | neutral |
| Mexico** | $50-$52 | $1,102-$1,146 | $1,000-$1,040 | ↓ $1.00 cwt. |
| 0.019" x 48" G90 | ||||
| China* | $49-$50 | $1,080-$1,102 | $980-$1,000 | ↓ $0.50 cwt. |
| India* | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| Galvalume | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| Taiwan* | $51-$52 | $1,124-$1,146 | $1,020-$1,040 | ↓ $1.00 cwt. |
| Mexico** | $51-$52 | $1,124-$1,146 | $1,020-$1,040 | ↓ $1.00 cwt. |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
** DDP loaded truck delivered into Houston