US import HDG prices drop on slow activity

Although most import offer prices on coated flat steel products to the US have been dropping the last couple weeks, prices aren't falling fast enough to address the US domestic price trend. While Chinese, Indian, Taiwanese and Mexican mills have been lowering their respective hot dipped galvanized (HDG) and Galvalume offer prices to the US, trader sources tell SteelOrbis that the declines are not matching those in the US domestic spot market fast enough to increase import activity. Conversely, now that import prices are coming down after months of stagnation, typical import buyers have temporarily stopped their purchases as they wait for import prices to bottom.

At least for the next few weeks, import prices are likely to continue falling, especially as demand levels in the Far East remain poor. Mexican prices for the US are also anticipated to mirror the US domestic downtrend. Since last week, Mexican 0.012"x40.875" G30 sales prices in the US fell $1.00 cwt. ($22/mt or $20/nt) to $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck delivered into Houston, matching a $1.00 cwt. decline in US domestic spots. Mexican Galvalume prices have also fallen $1.00 cwt. and are now between $45.00-$47.00 cwt. ($992-$1,036/mt or $900-$940/nt) DDP loaded truck delivered into Houston, but the majority of activity is taking place on the higher end, with only large orders garnering the $45.00 cwt. price.

**DDP loaded truck delivered into Houston