US import HDG prices fall amid static demand

Given the currently uncertain long term state of the US domestic coated flat steel spot market, the lack of interest in imports is not surprising, but higher raw material costs in the Far East have pushed up HDG and Galvalume import offer prices to the US in recent weeks anyhow. Chinese prices in particular have experienced the most significant increases but appear to have peaked. Chinese 0.019" x 48" G90 sales prices in the US have fallen an average of about $1.00 cwt. ($22/mt or $20/nt) to $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck in US Gulf ports. But, traders say, the drop isn't a result of lower offer prices from mills, but rather traders absorbing a portion of recent increases in an attempt to generate more activity. But even at slim margins, traders are finding few takers.

Import activity for niche products is faring better than for commodity items, but overall demand is low. After substantially raising its Galvalume 0.019x41.5625 Gr80/AZ55 offers a couple weeks ago, Taiwanese prices have fallen back slightly and can now be found between $47.00-$48.00 cwt. ($1,036-$1,058/mt or $940-$950/nt) DDP loaded truck in US Gulf ports. Nevertheless, the lower prices have yet to spark increased activity. On the Galvalume side, sources tell SteelOrbis that only imports out of Mexico are US buyers' only workable non-domestic option given the shorter transit time.

**DDP loaded truck delivered into Houston