The primary question at the forefront of the minds of many is how long the upward price momentum can sustain with less-than-exciting demand. The second question seems to revolve around how long mills will be able to pass on increases- especially as steel supply is increasing with a few blast furnaces coming back on line.
The mills are currently asking galvanized base prices no less than $41.00 cwt. ($904/mt or $820/nt) and the actual numbers fall about $1.50 cwt. ($33/mt or $30/nt) less than the asking prices.
Just looking at the demand and increasing supply situation, whether the latest asking price will be accepted has a bit of uncertainty attached to it. Not surprisingly, galvanized buyers will continue to be more fickle with their order placing than in years past. According to our sources, some days orders are slightly up, others they're slightly down, and this ebb and flow type order placing has for the most part, become the new normal.
Domestic spot pricing has increased by approximately $1.00 cwt. ($22/mt or $20/nt) since last week; with most offers being seen at around $38.00 cwt. to $40.00 cwt. ($838/mt to $882/mt or $760/nt to $800/nt) ex-Midwest mills. Domestic offerings for 0.019" x 48" G90 (0.48 mm x 1.219 m) and 0.012" x 40.875" G30 (0.30 mm x 1.04 m) have also increased approximately $1.00 cwt. ($22/mt or $20/nt) and are now being seen at around the range of $49.00 cwt. to $51.00 cwt. ($1,080/mt to $1,124/mt or $980/nt to $1,020/nt) and $50.00 cwt. to $51.00 cwt. ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), respectively, ex-Midwest mills. It should be noted, though, that deals are still being reported for the right tonnage, unlike the firm selling conditions on the cold rolled coils market.
Transaction prices for domestic Galvalume coil base sizes have also increased approximately $1.00 cwt. ($22/mt or $20/nt) and are now being offered at approximately $38.00 cwt. to $40.00 cwt. ($838/mt to $882/mt or $760/nt to $800/nt) ex-Midwest mills, while offers for 0.019" x 41.5625" Gr80/AZ55 are now being seen at approximately $49.00 cwt. to $50.00 cwt. ($1,080/mt to $1,102/mt or $980/nt to $1,000/nt) ex-Midwest mills.Stepping overseas, Indian and Taiwanese import offers for 0.019" G90 are holding steady after last week's bold $4.00 cwt. ($88/mt or $80/nt) increase, and offers continue to be seen at around $50.00 cwt. to $51.00 cwt. ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt) FOB loaded truck in US Gulf ports for India and approximately $51.00 cwt. to $52.00 cwt. ($1,124/mt to $1,146/mt or $1,020/nt to $1,040/nt), duty-paid, FOB loaded truck in US Gulf ports out of Taiwan.
Pricing for lighter gauges, 0.012" G30 from India and Taiwan have followed that same suit, with Indian offers continuing to be seen at around $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), and Taiwanese offers remaining in the approximate range of $50.00 cwt. to $51.00 cwt. ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), both duty-paid, FOB loaded truck in US Gulf ports. But again, although these offers are out there, the reluctance to place orders at price ranges which are at or above domestic offerings has prevailed.
In terms of Galvalume, Taiwanese offerings for 0.019" x 41.4625" Gr80/AZ55 have sustained from our previous report and continue to be seen at approximately $49.00 cwt. to $50.00 cwt. ($1,080/mt to $1,102/mt or $980/nt to $1,000/nt) duty-paid, FOB loaded truck in US Gulf ports. Mexican offers for the same product have also trended neutral and have remained in the approximate range of $50.00 cwt. to $51.00 cwt ($1,102/mt to $1,124/mt or $1,000/nt to $1,020/nt), delivered to US border states.