US import HDG import activity to remain slow

Since US import demand for hot dipped galvanized (HDG) and Galvalume coil has been so sluggish over the past couple weeks because of declining US domestic spot prices, a number of offshore mills have expressed willingness to US traders to negotiate prices lower for a firm bid and a large-volume order. Chinese mills have actually increased their HDG offer prices to the US slightly in the last week, but sources tell SteelOrbis that they'll quickly drop prices for the "right order." Regardless, many US buyers aren't willing to take the import risk right now, so actual booking activity is still light and Chinese price increases haven't made their way into sales prices in the US yet.

Arriving imports from orders placed in the final months of 2011, meanwhile, are beginning to arrive in the US at expectedly high volumes. US Steel Import Monitoring and Analysis (SIMA) data indicate that 89,141 mt (license data) of HDG sheet and strip arrived in the US through February 14, compared to 113,531 mt (license data) for the full month of January. February imports are set to surpass January levels and March arrivals are anticipated to be even higher.

**DDP loaded truck delivered into Houston