US import HDG prices drop substantially

Over the past week, import offer prices to the US for hot dipped galvanized (HDG) coil from major sources have taken a dive. Import activity has shown a mild uptick in the last few weeks as the US domestic pricing trend has improved. However, many US buyers are still reluctant to book offshore orders, skeptical that US domestic prices will still be firm or increasing by the time futures orders arrive in late Q4. Additionally, the domestic steel markets and prices locally in India and China continue to be depressed, resulting in a significant drop in offer prices to the US in the last week. Indian HDG 0.012"x40.875" G30 offers have fallen by $1.50 cwt. ($33/mt or $30/nt) to $41.50-$42.50 cwt. ($915-$937/mt or $830-$850/nt) DDP loaded truck in US Gulf ports. India's HDG 0.019" x 48" G90 prices fell by $0.50 cwt. ($11/mt or $10/nt) since last week.

As mentioned in previous reports, US buyers' top choice for HDG coil tends to be India, so Chinese mills' prices have to be below India's to garner more activity. Consequently, Chinese 0.012"x40.875" G30 sales prices in the US have tumbled $3.00 cwt. ($66/mt or $60/nt) since last week and are now between $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck in US Gulf ports, although some Chinese mills are sticking to offer prices that are about $1.00 cwt. ($22/mt or $20/nt) higher. Although US buyers still have not rushed to snap up Chinese HDG coil, sources tell SteelOrbis that the prices are attractive enough that a number of traders have gone out to purchase position tons.

**DDP loaded truck delivered into Houston