US import HDG interest slowly improves as prices drift lower

Mills in China and Taiwan have indicated their willingness to drop offer prices to the US, and a pickup in futures activity could soon be on the horizon. The trend is pointing down across the board for import offer prices to the US from Asian mills. Chinese offer prices for HDG 0.019" x 48" G90 have fallen another $0.50 cwt. ($11/mt or $10/nt) since last week and while Indian offers are unchanged, a decrease is also imminent once Indian mills drop HDG 0.012"x40.875" G30 in the next week or two. Trader sources note that Indian mills are taking their time in officially dropping prices but given a weak US domestic market and little futures interest already, expectations for a price decrease are high.

As for Galvalume, Taiwanese and Korean mills have closed their previous offers and new prices are anticipated in about a week or so. Sources have said that Taiwanese mills could try for an increase or to roll over pricing as a result of price increase announcements in the US domestic market, but will undoubtedly come down in order to attract activity from US buyers. New import offer prices will be for July production (August shipment and October delivery), and could garner a significant amount of interest if new prices are low enough and spot prices in the US domestic market begin to stabilize.

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