US hot dipped galvanized (HDG) coil prices have remained stable in the last week, though weakening demand and falling zinc prices have led some mills to become more lenient on enforcing extras. Nevertheless, mills are reportedly gearing up for another price hike.
Since last week, most domestic HDG base prices have remained at a range of $36.00 cwt. to $37.00 cwt. ($794/mt to $816/mt or $720/nt to $740/nt) ex-Midwest mills, while offers of 0.019" x 48" G90 (0.48 mm x 1.219 m) now range from $47.00 cwt. to $48.00 cwt. ($1,036/mt to $1,058/mt or $940/nt to $960/nt) ex-Midwest mills. Domestic offers of 0.012" x 40.875" G30 (0.30 mm x 1.04 m) continue to range from approximately $49.00 cwt. to $51.00 cwt. ($1,080/mt to $1,124/mt or $980/nt to $1,020/nt) ex-Midwest mills.
Domestic Galvalume offers are also stable since last week, with most base prices still ranging from $36.00 cwt. to $37.00 cwt. and 0.019" x 41.5625" Gr80/AZ55 still ranging from $47.00 cwt. to $48.00 cwt. ex-Midwest mills.
Despite domestic HDG prices remaining stable on the whole, with some uncertainty about what US scrap prices will do in February, as well as weakening zinc prices and an observed softening in HDG demand, some mills have reportedly become more negotiable in enforcement of extras in order to book some tons. Nevertheless, the overall price trend for US HDG is still slightly up, as domestic lead times are now extended to eight weeks-plus, and many expect US busheling scrap prices to post at least a slight gain this month. Imports also remain a non-threat and most customers are still very low on inventory. Once the February busheling scrap price becomes apparent, mills are expected to announce an April price increase to firm up spot prices one more time on the heels of raw materials.
Import-wise, the market remains mostly stagnant. The only interesting development since last week is that China is now offering some rather attractively priced light gauge (0.012" G30) material, though Chinese offers of thicker material is still not competitive. Generally, most US customers are still not willing to take the risk of booking import and prefer to stick to small domestic shipments, even if they have to pay a slight premium for them.
Offers of 0.012" G30 from China currently range from $45.00 cwt. to $46.00 cwt. ($992/mt to $1,014/mt or $900/nt to $920/nt) duty-paid, FOB loaded truck in US Gulf ports, while Chinese offers of 0.019" G90 range from $47.00 cwt. to $48.00 cwt. duty-paid, FOB loaded truck in US Gulf ports.
Current import indications for 0.019" G90 are from both Taiwan are still at about $47.00 cwt. ($1,036/mt or $940/nt) and above, duty-paid, FOB loaded truck in US Gulf ports, while offers of the same product from India are at $48.00 cwt. to $50.00 cwt. ($1,058/mt to $1,102/mt or $960/nt to $1,000/nt) duty-paid, FOB loaded truck in US Gulf ports.
Indications for 0.012" G30 from India are at about $48.00 cwt. to $50.00 cwt. while Taiwanese offers of the same product are currently at about $47.50 cwt. ($1,047/mt or $950/nt), both duty-paid, FOB loaded truck in US Gulf ports. Taiwanese Galvalume offers are also at $47.50 cwt. and higher, while Mexico is also offering some Galvalume to the US at a range of $47.00 cwt. to $49.00 cwt. ($1,036/mt to $1,080/mt or $940/nt to $980/nt) delivered to US border states.