US import HDG prices drop after last week’s minor increase

Tuesday, 06 March 2012 01:52:45 (GMT+3)   |  
About two weeks ago, Chinese mills increased their cold rolled coil (CRC) and hot dipped galvanized (HDG) offer prices to the US. However, last week, Indian mills dropped their HDG offer prices to the US amid weak activity from US buyers, forcing Chinese mills to lower their prices as well, in order to keep their market share. One trader in the South explained that for certain products, such as HDG 0.012"x40.875" G30, Chinese offer prices need to be below Indian (many US buyers' first import choice) to garner activity. As such, Chinese offer prices to the US have fallen $2.00 cwt. ($44/mt or $40/nt) since last week to $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) DDP loaded truck in US Gulf ports after increasing $0.50 cwt. ($11/mt or $10/nt) a week ago. Indian HDG 0.012"x40.875" G30 prices have fallen $1.00 cwt. ($22/mt or $20/nt) since last week on the same product.

Meanwhile, Indian HDG 0.019" x 48" G90 offer prices have remained unchanged since last week, but sources indicate that a serious inquiry could bring current price--in the range of $47.00-$48.00 cwt. ($1,036-$,1058/mt or $940-$960/nt) DDP loaded truck in US Gulf ports--down as much as $1.00 cwt. Despite this week's sizeable drop in some import offer prices, activity is still restrained as many US buyers (and traders) aren't convinced yet that import prices have hit bottom, driving many to delays placing an order.

Import HDG offers to the US Cwt. Metric ton (mt) Net ton (nt) Change from last week
         
0.012"x40.875" G30        
India* $46-$47 $1,014-$1,036 $920-$940 ↓ $1.00 cwt.
China* $45-$46 $992-$1,014 $900-$920 ↓ $2.00 cwt.
Mexico** $46-$47 $1,014-$1,036 $920-$940 neutral
         
0.019" x 48" G90         
China* $47-$48 $1,036-$1,058 $940-$960 ↓ $1.00 cwt.
India* $47-$48 $1,036-$1,058 $940-$960 neutral
Taiwan* $48-$49 $1,058-$1,080 $960-$980 ↓ $1.50 cwt.
         
Import Galvalume offers to the US         
0.019x41.5625 Gr80/AZ55        
Taiwan* $49-$50 $1,080-$1,102 $980-$1,000 ↑ $0.25 cwt.
Mexico** $49-$50 $1,080-$1,102 $980-$1,000 neutral
China* $49-$50 $1,080-$1,102 $980-$1,000 ↑ $0.50 cwt.
*DDP loaded truck in US Gulf ports

**DDP loaded truck delivered into Houston


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