US import HDG market searches for a bottom

Even as it appears that certain hot dipped galvanized (HDG) and Galvalume import offers to the US have hit bottom, others continue to drift lower. Chinese import offer prices have stabilized the last couple weeks and trader sources have indicated that prices aren't expect to register any significant drops for at least the next couple weeks. With so many offers from different mills in China, it remains possible that a few offer prices will fall slightly, but the overall trend is stable for now. So long as Chinese prices hold firm, so will Indian prices--India had been lowering its offers in tandem with China to remain competitive.

Taiwan, meanwhile, is only competitively offering Galvalume to the US (Taiwanese offers for HDG coil are too high to interest traders) but offers have fallen since last week. Taiwanese prices are now forced to drop due to rapidly softening US domestic spot prices. Offer prices out of Mexico are also still falling. Demand locally in Mexico has slowed recently, but the main rationale behind this week's drop is price weakness in the US. Since last week, Mexican offers for HDG 0.012"x40.875" G30 and 0.019" x 48" G90, as well as Galvalume 0.019x41.5625 Gr80/AZ55 have all fallen by $1.00 cwt. ($22/mt or $20/nt)--equivalent to declines in the US market in the same time period. With Mexican mills eager to sell, prices are anticipated to move alongside those in the US, and therefore slip further in the upcoming weeks.

**DDP loaded truck delivered into Houston