US import HDG activity shows slight pick-up while prices drop again

With lead times on certain hot dipped galvanized (HDG) imports now in late Q1 of next year, traders have reported a seasonal uptick in activity. March deliveries on coated flat steel products out of China and Taiwan have resulted in added import booking activity in the last week. March is generally a stronger construction month in the US, according to trader sources, and with US domestic steel prices on the rise, US buyers have grown a bit more confident in booking offshore orders. Additionally, certain Chinese and Taiwanese mills have been more flexible with the offer prices in the last couple weeks--while Taiwanese Galvalume 0.019x41.5625 Gr80/AZ55 offers haven't officially moved from $42.00-$43.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US Gulf ports, Taiwanese mills took a few orders at prices about $0.50 cwt. ($11/mt or $10/nt) lower.

Meanwhile, Indian mills have also struck a few deals here and there, and US traders selling Indian HDG coil in the US are still taking a margin hit, having to lower prices less expensive prices out of China and Mexico. China has continued its push to try and raise offer prices, and has had some success increasing prices by $1.00 cwt. ($22/mt or $20/nt) on HDG 0.019" x 48" G90, particularly to US West Coast customers. Mexico, on the other hand, has dropped its coated flat steel offer prices to the US across the board, and has now essentially sold out its December order books.

**DDP loaded truck delivered into Houston