The US flat rolled market continues to show weakness due to the severe lack of demand. Looking at coated products specifically, spot prices have generally trended sideways in the last week, though due to the continued weak demand, there are indications that further softening may be to come.
US flat rolled business had been expected to increase as we get closer to the spring season, but there have been no signs of the anticipated upturn in business yet. In fact, things seem to be softening slightly due to the poor demand. Domestic mills have yet to indicate an official price decrease for long term offers; however, quick delivery orders are often able to command some discount.
At present, domestic spot offers for HDG coils are generally trending sideways, and the HDG market is faring slightly better than that for hot rolled or cold rolled. Domestic HDG coil base prices on the spot market continue to range from approximately $30.00 cwt. to $32.00 cwt. ($661 /mt to $705 /mt or $600 /nt to $640 /nt) from most mills in the Midwest region. For sizes 0.019" x 48" G90 (0.48 mm x 1.219 m), domestic mills offer in the range of $39.00 cwt. to $41.00 cwt. ($860 /mt to $904 /mt or $780 /nt to $820 /nt) ex-mill Midwest, while domestic 0.012" x 40.875" G30 (0.30 mm x 1.04 m) is offered within the range of $41.00 cwt. to $43.00 cwt. ($904 /mt to $948 /mt or $820 /nt to $860 /nt) ex-mill Midwest.
On the import side, as mentioned in our last report, China remains the bright spot as they have firmed up their pricing slightly in recent weeks. However, due to the Chinese (Lunar) New Year, Chinese and Taiwanese mills have not offered in the last week, and it is not yet entirely clear where the post-New Year price trend will head. Historically, the Chinese market usually starts to improve after the New Year, but given the weak global demand, it cannot be said with any certainty that this will be the case in 2009. Flat rolled demand from Europe remains especially weak, which may cut off further export possibilities for the Asian mills and thereby negatively impact their ability to keep prices up.
Generally, Latin American and Mexican mills continue to offer flat rolled to the US at the most aggressive levels compared to other import sources.
Most offers to the US from India for HDG 0.019" x 48" G90 (0.48 mm x 1.219 m) items have trended sideways since last week with most offers continuing to range from approximately $38.00 cwt. to $40.00 cwt. ($838 /mt to $882 /mt or $760 /nt to $800 /nt), duty-paid FOB loaded truck in Gulf Coast ports. For the same size and coating, Chinese and Taiwanese offers from before the New Year respectively ranged from $38.00 cwt. to $40.00 cwt. and from $40.00 cwt. to $42.00 cwt. ($882 /mt to $926 /mt or $800 /nt to $840 /nt), duty-paid, FOB loaded truck West Coast ports. However, it will not be clear until later this week whether these price levels will stand.
Indian offers for 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have also trended sideways since last week and are found at a range of $37.00 cwt. to $39.00 cwt. ($816 /mt to $860 /mt or $740 /nt to $780 /nt) duty-paid, FOB loaded truck in Gulf Coast ports. Mexican offers for the same size and coating also trended neutral and still range from $38.00 cwt. to $40.00 cwt. at the border crossing. Before the Chinese New Year, Taiwanese offers ranged from $39.00 cwt. to $40.00 cwt. ($860 /mt to $882 /mt or $780 /nt to $800 /nt) duty-paid FOB loaded truck West Coast ports.
On the galvalume side of market, import offers for 0.019 x 41.5625 Gr80/AZ55 from India, and South Korea have dropped by approximately $1.00 cwt., with most offers now ranging from $39.00 cwt. to $41.00 cwt. duty-paid FOB loaded truck in US Gulf and West Coast ports. Mexico's galvalume offers for the US are about $1.00 cwt. cheaper, at about $38.00 cwt. to $40.00 cwt. at the border crossing. These import offers compare to the slightly higher price range of about $40.00 cwt. to $42.00 cwt. FOB mill for domestic galvalume material.