US import HDG price increases keep buying activity quiet

A week ago, Chinese mills announced price increases on coated flat steel offer prices to the US, but little activity has taken place since. Chinese import sales prices in the US on hot dipped galvanized (HDG) coil products had been on the decline throughout September and the first half of October; but since then, Chinese mills attempted a $20/mt increase on export prices. Only a portion of the increase was absorbed into trader sales prices, but the Chinese mills have also been unwilling to back off the increases entirely either. If recent price increases in the US domestic market gain traction, US buyers might be more willing to pay a price increase on foreign material as well--but until then, import demand will continue to be tepid.

Trader sources tell SteelOrbis that those considering purchasing offshore tons are sticking with India, but even orders placed with Indian mills are far from robust given too much price uncertainty in the US domestic market. As a result of some typical import buyers' wariness to commit to an order that won't be delivered until Q1, there has been a steady flow of orders with Mexico, which has been striking deals below official prices certain gauges and larger orders. Prices out of Mexico are unchanged since last week, but if US domestic prices do begin to trend higher, Mexican prices will likely follow suit.

**DDP loaded truck delivered into Houston