US import HDG prices on a downtrend

After stagnant import offer prices to the US over the last few months, prices fell again last week and are likely to keep sliding. Indian, Chinese, Taiwanese, and Mexican mills all lowered their offer prices of hot dipped galvanized (HDG) and Galvalume products to the US as week ago, and many prices have fallen again this week. Indian 0.012"x40.875" G30 offer prices are down $0.50 cwt. ($11/mt or $10/nt) DDP loaded truck in US Gulf ports last week, following a similar drop in Chinese prices a week ago. Mexican mills' offers for the same products fell $1.00 cwt. ($22/mt or $20/nt) over the past week, putting prices about $2.00 cwt. ($44/mt or $40/nt) below US domestic spot prices.

Both Chinese and Taiwanese HDG 0.019" x 48" G90 offer prices have fallen another $0.50 cwt. since last week to $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports, but trader sources tell SteelOrbis that declines over the last couple weeks have not been enough to spur any increased US buying activity. Additionally, US buyers don't believe import offer prices have bottomed yet, and are waiting for prices to fall further before committing to a futures order. Chinese mills have expressed willingness to negotiate their prices on HDG and Galvalume for a decent-sized order, but by only about $0.50 cwt. more. If Chinese prices do fall, Indian prices are likely to follow suit.