After falling about $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) last month, US domestic hot dipped galvanized (HDG) prices have dropped again in early July.
Amid slow order activity and lead times that are only three to five weeks, US domestic spot prices for HDG and Galvalume products have once again adjusted downward. In the last week, HDG and Galvalume base spot prices have fallen $1.00 cwt. ($22/mt or $20/nt) into the range of $41.00-$42.00 cwt. ($904-$926/mt or $820-$849/nt) ex-Midwest mill. HDG spot prices--which have come down a total of $8.00 cwt. ($176/mt or $160/nt) since early April--are still soft, and spot prices are likely to slip another $1.00 cwt. by the end of this month.
With the swift decline in domestic spot prices, service center sources tell SteelOrbis that spot prices are falling faster than existing higher-priced inventory can be sold off. As a result, not only have profit margins narrowed dramatically, but in some cases "have gone by the wayside entirely," according to one Midwest distributor. Although the seasonal summer slowdown has certainly had an effect on overall HDG sales, the main culprit of softening flats prices is overcapacity, with rapidly dropping hot rolled coil (HRC) spot prices being hardest hit and forcing softening on downstream products such as HDG.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $41-$42 | $904-$926 | $820-$849 | ↓ $1.00 cwt. |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $50-$52 | $1,102-$1,146 | $1,000-$1,040 | neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | ↓ $1.00 cwt. |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $41-$42 | $904-$926 | $820-$849 | ↓ $1.00 cwt. |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | ↓ $1.00 cwt. |
Looking offshore, falling US prices are keeping new import bookings at bay. While most import offers have been trending down along with US prices, import prices have trended mostly neutral in the last couple weeks and are now in line with US prices and stirring no interest. On the other hand, arriving imports registered a dramatic increase in June. US Steel Import Monitoring and Analysis (SIMA) data show 122,512 mt (license data) of HDG sheet and strip arriving in June compared to 106,816 mt (preliminary census data) arriving in May. Mostly notably in June was 16,162 mt (license data) of HDG arriving from India compared to 5,330 mt (preliminary census data) arriving in May.
| 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 | neutral |
| China* | $48.50-$49.50 | $1,069-$1,091 | $970-$990 | ↓ $0.50 |
| Mexico** | $50-$52 | $1,102-$1,146 | $1,000-$1,040 | neutral |
| 0.019" x 48" G90 | ||||
| China* | $49-$50 | $1,080-$1,102 | $980-$1,000 | neutral |
| India* | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| Taiwan*** | $51-$53 | $1,124-$1,168 | $1,020-$1,060 | neutral |
| Import Galvalume offers to the US | ||||
| 0.019x41.5625 Gr80/AZ55 | ||||
| Taiwan* | $51-$52 | $1,124-$1,146 | $1,020-$1,040 | neutral |
| Mexico** | $50-$52 | $1,102-$1,146 | $1,000-$1,040 | neutral |
| China* | $52-$53 | $1,146-$1,168 | $1,040-$1,060 | neutral |
| India* | $53-$54 | $1,168-$1,190 | $1,060-$1,080 | neutral |
** DDP loaded truck delivered into Houston
***DDP loaded truck in US West Coast ports