US import HDG buyers unwilling to pay higher prices

Although steady import activity in the US for coated flat steel coil products has not diminished over the last couple weeks, it doesn't mean US buyers are willing to pay any sort of price increase. In early August, Indian mills attempted to hike offer prices on their hot dipped galvanized (HDG) coil to the US, and traders' skepticism that these increases would be fully realized has proven accurate. Indian offers to the US for HDG 0.012"x40.875" G30 have fallen back to their pre-increase level of $41.00-$42.00 cwt. ($926-$948/mt or $840-$860/nt) DDP loaded truck in US Gulf ports. Although India is US import buyers' first offshore choice for the material, current uncertainty within the US domestic market has made potential customers reluctant to pay any sort of price increase.

That mentality extends to the Galvalume import market as well. Chinese mills increased their Galvalume 0.019x41.5625 Gr80/AZ55 coil offer prices to the US by $1.50 cwt. ($33/mt or $30/nt) to $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) DDP loaded truck in US Gulf ports, bringing prices too close to US domestic spot prices to gain acceptance. Trader sources anticipate that Chinese mills will attempt to "hang tough" on the increase as long as possible, but will likely be willing to negotiate prices in the coming weeks. Indian mills are also trying to hike their Galvalume offers to the US, but those increases have not translated to higher trader sales prices in the US given the unlikelihood that any price increase will stick.

*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston