With demand remaining at very low levels, US hot dip galvanized (HDG) coil prices have slipped in the last couple of weeks, for both domestic and import offers.
Domestic mills are heard to be chasing the more niche items in order to fill up their galvanized lines, and are therefore becoming more competitive in light gauge sizes. "This is something we had not seen for maybe 18 months," said one flat rolled trader.
Current domestic prices for 0.012" x 4.875" G30 (0.30 mm x 1.04 m) -- a lighter-gauge HDG product that is commonly imported but considered more of a niche item by domestic mills -- range from about $36.00 cwt. to $38.00 cwt. ($784 /mt to $838 /mt or $720 /nt to $760 /nt) FOB mill. This price range reflects a decrease of about $4.00 cwt. ($88 /mt or $80 /nt) in just two weeks, and puts domestic offers of this product more in line with import prices.
Domestic galvalume offers have also come down in the last two weeks, with most offers for 0.019" x 41.5625" Gr80/AZ55 now ranging from $39.00 cwt. to $41.00 cwt. ($860 /mt to $904 /mt or $780 /nt to $820 /nt) FOB Midwest mills, which is down $1.00 cwt. from two weeks ago. Meanwhile, the more commonly produced domestic HDG item, 0.019" x 48" G90 (0.48 mm x 1.219 m), has remained stable over the last two weeks at a range of $38.00 cwt. to $40.00 cwt. ($838 /mt to $882 /mt or $760 /nt to $800 /nt) FOB Midwest mills.
At the same time, on the import side, India is trying to finalize some shipment tonnage for March, which is the end of its fiscal year and historically its top shipping month. However, mills have had to cut prices to get any significant orders and are now offering 0.012" G30 items at approximately $35.00 cwt. to $37.00 cwt. ($772 /mt to $816 /mt or $700 /nt to $740 /nt) duty-paid FOB loaded truck in US Gulf ports, which reflects a decrease of $2.00 cwt. ($44 /mt or $40 /nt) in the last two weeks. Indian offers of 0.019" G90 continue to range from $38.00 cwt. to $40.00 cwt., duty-paid FOB loaded truck in Gulf Coast ports, reflecting a sideways trend from two weeks ago.
Meanwhile, Taiwanese mills have reduced their local hot rolled price and re-rolling mills are reducing their price for galvanized and prepainted products as a result. Import HDG prices from Taiwan have not dropped by as much as Taiwan's local HRC prices; however, traders report that Taiwanese HDG offers have become more competitive again. Taiwanese offers of 0.012" G30 currently range from about $39.00 cwt. to $40.00 cwt. ($860 /mt to $882 /mt or $780 /nt to $800 /nt) duty-paid FOB loaded truck in West Coast ports, which reflects a decrease of about $2.00 cwt. over the last two weeks. Taiwanese offers of 0.019" G90 have trended neutral over the last two weeks, with most offers still ranging from $40.00 cwt. to $42.00 cwt. ($882 /mt to $926 /mt or $800 /nt to $840 /nt) duty-paid FOB loaded truck in West Coast ports.
Mexico's 0.012" G30 offers for the US have remained stable over the last couple of weeks, with most offers still ranging from $38.00 cwt. to $40.00 cwt. at the border crossing.
The pricing trend for both domestic and import HDG offers to the US, particularly for lighter gauge (0.012" G30) products, is still trending down due to the continued slump in demand, both in the US and in the foreign mills' home markets. However, one player that is not participating in the downward trend is China. Chinese mills are content to sit on the sidelines, as their prices are too high to compete with the other import sources. China is virtually absent from the US HDG market at present.
Import galvalume offers for the US have generally trended sideways over the last two weeks, although, based on the latest indications from Taiwanese mills, Taiwanese offers will probably soon adjust slightly downward. For now most offers for 0.019" AZ55 from Taiwan, India and South Korea range from $39.00 cwt. to $41.00 cwt. ($860 /mt to $904 /mt or $780 /nt to $820 /nt) duty-paid, FOB loaded truck in Gulf and West Coast ports.