US import HDG activity continues to slow despite falling prices

Import hot dipped galvanized (HDG) and Galvalume offer prices to the US have registered another decline in the last week, but activity is slowing in tandem. Mexican offer prices to the US have been steadily following the US domestic market, matching decreases over the past few weeks. Mexico's Galvalume 0.019x41.5625 Gr80/AZ55 prices are down $1.00 cwt. ($22/mt or $20/nt) since last week to $44.00-$46.00 cwt. ($970-$1,014/mt or $880-$920/nt) DDP loaded truck delivered into Houston--$1.00 cwt. below the US domestic spot price.

Although orders at Mexican mills aren't particularly robust, they haven't dropped off entirely either, and a decent amount of orders continue to be placed south of the border. But China's, India's and Taiwan's recent price drops have only slowed US buying activity further, and traders tell SteelOrbis that buyers are waiting until they are certain import prices have hit bottom before placing an order that wouldn't arrive until Q4. Some import prices, particularly HDG 0.012"x40.875" G30 from India and China is expected to drop by month's end, especially following declines in HDG 0.019" x 48" G90 and Galvalume 0.019x41.5625 Gr80/AZ55 this week.

**DDP loaded truck delivered into Houston