US import HDG activity remains sluggish amid market and price uncertainty

Late last week, Chinese mills attempted to increase the CFR offer prices on cold rolled coil (CRC) and hot dipped galvanized (HDG) coil to the US by approximately $10/mt, but trader sources have indicated that no orders have been taken at the new prices and Chinese mills remain willing to take orders at previously reported levels. As a result, Chinese HDG 0.012"x40.875" G30 and HDG 0.019" x 48" G90 offer prices can still be found at $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt), and $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt), respectively, both DDP loaded truck in US Gulf ports. These same sources are skeptical that the sudden price increase will stick and import sales prices in the US from China are likely to resume their downtrend in the next couple weeks.

Other import sources, meanwhile, have already dropped their prices due to competition from China. Indian HDG 0.019" x 48" G90 offer prices to the US are down $1.50 cwt. ($33/mt or $30/nt) since last week to $42.00-$43.00 cwt. ($923-$948/mt or $923-$948/nt), DDP loaded truck in US Gulf ports. Mexico also remains competitive, and is expected to drop its prices so long as US domestic spot prices for coated products are on the decline. But even the new lower prices from certain regions haven't been enough to entice most US buyers given that US domestic spot prices have been falling by about $1.00 cwt. ($22/mt or $20/nt) a week the last couple weeks and the trend is showing no signs of letting up.

**DDP loaded truck delivered into Houston