US import activity quiet as domestic prices tumble

The level of import hot dip galvanized (HDG) coil interest in the US has been extremely quiet over the past week. As mentioned in our last report a week ago, import offer prices out of the US' three major offshore sources have largely ceased their rapid decline, even as US domestic spot prices are still softening. Offer prices out of China and Taiwan could come down as much as $1.00 cwt. ($22/mt or $20/nt) if "the mills decide they really want to get aggressive," according to one southern trader, but not much more considering how much prices have fallen over the past couple months. Mexico, meanwhile, is expected to maintain its competiveness by lowering offer prices as US domestic spots decline.

While current import demand is only tepid, a flow of previously purchased futures are still arriving in the US in heavy volumes. US Steel Import Monitoring and Analysis (SIMA) license data show 135,084 mt of HDG sheet and strip arriving in September, following 148,018 mt (preliminary census data) in August. Canada, as usual, was the largest source in both months with 47, 858 mt in September and 145,733 mt in August, but China, India and Taiwan remained prominent sources as well. In September, 7,175 mt arrived from China and 14,528 mt arrived from Taiwan. Even though only 707 mt HDG from India was recorded in September, it followed a heavy August with 22,639 mt.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston