US import HDG prices could hold steady following the Lunar New Year holiday

Import hot dipped galvanized (HDG) and Galvalume offer prices to the US generally surge following China's Lunar New Year holiday, but trader sources tell SteelOrbis that any price changes in the next couple weeks are likely to be mild. Domestic steel demand in the Far East is lethargic, and prior to the holiday, coated flat steel prices in China were on a neutral to slightly down trend. The same goes for Taiwanese import offer prices to the US and industry insiders indicate that if China keeps its offer prices to the US level, mills in other countries such as India will follow suit.

Offshore mills would be wise to keep offer prices level; import HDG demand in the US is far from robust, but isn't entirely quiet either as the disparity between import and US domestic spot prices is still wide enough to garner some activity, but a price increase could quickly halt the little activity still present. With concerns growing that US domestic prices could be under downward pressure sooner rather than later, most US buyers are still sticking to domestic or Mexican HDG coil to avoid long lead times for the time being.

**DDP loaded truck delivered into Houston