US import Galvalume prices drop, HDG to follow

Expectedly, import offer prices to the US for coated flat steel have moved lower again, with Galvalume prices taking the largest dive. Galvalume 0.019x41.5625 Gr80/AZ55 offers out of Mexico have fallen $1.00 cwt. ($22/mt or $20/nt) on the low end in the last week in order to remain competitive with US domestic spot prices. Offer prices are now $42.00-$44.00 cwt. ($926-$970/mt or $840-$880/nt) DDP loaded truck delivered into Houston, and just low enough to allow Mexico to receive consistent orders from the US. Taiwanese prices are also down $1.00 cwt. in the last week to the range of $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports. Although new Chinese offers are not yet available, prices are anticipated to also be $1.00 cwt. lower. While the new offers aren't exactly competitive at the moment, trader sources have said that "we're getting close" and prices are likely to keep falling.
Even though the majority of US buyers are not willing to book major import tons (just as traders are wary of placing speculative orders) traders in the Gulf Coast and East Coast confirm that at the very least, there has been more discussion than in previous weeks. As for hot dipped galvanized (HDG) coil futures offers, prices out of China and India are generally stable since last week, although the bulk of activity is now taking place at the lower end of the ranges. In the next week, however, the below prices are also anticipated to fall anywhere from $0.50-$1.00 cwt. ($11-$22/mt or $10-$20/nt).

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston