US import HDG market stable year-over-year

As in previous weeks, volatility in the US domestic HDG market continues to have buyers trending cautious in terms of booking US import HDG and Galvalume coil from offshore providers.

Year-over-year import tonnages, however, appear to be stable, despite the implementation of Section 232 tariffs and quotas.  January 29 data from the US DOC shows that for the month of October 2018, the US imported 236,055 mt of HDG coil from global sources, which is nearly identical to levels reported in October 2017, when the US imported 238,933 mt.

Of greatest interest, is Rep. Warren Davidson’s Global Trade Accountability Act, which was introduced into the House of Representatives late last month. If passed, the bill would restore Congress’s constitutional authority over trade and international commerce, including approval on tariffs, duties and quotas. Should this happen, US buyers could have the relief they’re seeking in terms of import HDG coil purchases, especially on specialty grades that are not being produced by domestic mills.  As such, passage of the legislation is largely supported by end-users, who rely on offshore mills for “unusual grades and sizes.”