US import HDG activity improves as prices continue to soften

After months of minimal interest from US buyers in imports of hot dipped galvanized (HDG) and Galvalume coil, activity has started to pick up over the last week. Trader sources tell SteelOrbis that with many import offer prices now below US domestic spot prices, the downside risk on taking position on an offshore order has minimized. Additionally, many US buyers believe that US domestic spots are close to a bottom, if they haven't hit it already--a couple US flats announced price increases on Monday. Meanwhile, with import offer prices falling to reasonably attractive levels in the last couple weeks, buyers' confidence in imports has experienced a boost in the last week.

Indian HDG 0.012"x40.875" G30 offer prices are down another $1.00 cwt. ($22/mt or $20/nt) since last week to $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports, and while Chinese offers haven't officially moved yet, they are expected to drop in the next week or two. Meanwhile, Mexican 0.012"x40.875" G30 prices in the range of $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck delivered into Houston have inspired quite a few orders from the US. Mexico is also experiencing a boost in interest for Galvalume 0.019x41.5625 Gr80/AZ55 in the range of $44.00-$46.00 cwt. ($970-$1,014/mt or $880-$920/nt) DDP loaded truck delivered into Houston.

**DDP loaded truck delivered into Houston