US import HDG prices begin to rise following improved activity

With US domestic flat rolled spot prices on the rise, customers have been more willing to pay higher import prices. US domestic spot prices are swiftly increasing on the heels of higher US scrap prices and two flat rolled price increases in less than a month. The run-up in domestic pricing has renewed some buyers' interest in booking futures. Traders tell SteelOrbis that previously, customers weren't willing to pay some of the higher offshore prices from countries such as China, but have recently been more inclined to pay the increases. China increased its CFR offer prices on hot dipped galvanized (HDG) products by about $10-$20/mt a couple weeks ago, and is already asking for at least another $20/mt price increase. New Chinese HDG 0.019" x 48" G90 offers are up $1.00 cwt. ($22/mt or $20/nt) since last week, and could inch up slightly higher.

Meanwhile, other US import sources for HDG and Galvalume aren't actively offering at the moment. India has closed its previous offers and hasn't announced new offers--new prices out of India are, however, expected to reflect a price increase. Taiwanese Galvalume mills have filled up their order books through February production after taking a decent amount of orders and also haven't released new prices, but a price increase is also imminent. Similarly, after closing its order books, Mexico hasn't announced its new prices, but as usual, Mexican offers are likely to be just shy of US domestic spot prices.