US import HDG activity remains better than expected

Even though import offers on hot dipped galvanized (HDG) and Galvalume coil have risen for most products over the past few weeks, it has not slowed US buyers' interest in futures. Trader sources tell SteelOrbis that import activity is better than expected considering year-end delivery dates, and that is due in part to import offers still maintaining a relatively wide gap compared to the same products in the US domestic spot market. Chinese mills are still attempting to push their prices higher, but could become open to negotiation if they don't receive as many orders as they'd anticipated.

Chinese HDG 0.019" x 48" G90 coil offers are up $0.50 cwt. ($11/mt or $10/nt) since last week but Chinese 0.012"x40.875" G30 coil prices have held steady at $1.00 cwt. ($22/mt or $20/nt) under Indian offers. When it comes to offshore HDG 0.012"x40.875" G30, India is US buyers' first choice, and Chinese prices must be below India's for buyers to consider non-Indian material. As for Galvalume, Mexican offer prices have fallen by about $1.00 cwt. ($22/mt or $20/nt) on the high end. Because of the shorter delivery dates as compared to other import sources, Mexican mills were able to collect a premium on prices the last couple months. However, with material ordered from India, China and especially Taiwan scheduled to arrive in the next couple months in larger numbers, the advantage of ordering from south of the border has diminished.

*DDP loaded truck in US Gulf ports
**DDP loaded truck delivered into Houston