US import HDG prices on the rise despite muted interest

Since last week, import offer prices for coated flat steel products to the US have risen nearly across the board, but the increases aren't a reaction to any improvement in demand. Iron ore prices in the Far East have climbed over the last couple weeks and trader sources indicated that overseas mills have had no choice but to raise prices in tandem. China's offer prices for 0.012"x40.875" G30 are up about $0.50 cwt. ($11/mt or $10/nt) since last week, but remain about $1.00 cwt. ($22/mt or $20/nt) below Mexican and Indian offers for the same product. But while Mexican and Indian prices are within the same general range, Mexican mills are likely to drop prices to try and entice US buyers to book south of the border instead of with Indian mills, which is many customers' first choice.

As for Galvalume 0.019x41.5625 Gr80/AZ55, Taiwan raised its offer prices to the US by $1.50 cwt. ($33/mt or $30/nt) since last week, with prices now in the $44.00-$45.00 cwt. ($970-$992/mt or $880-$900/nt) DDP loaded truck in US Gulf ports range, bringing prices to the same level as Chinese offers, which increased $1.00 cwt. since last week. Mexico is offering Galvalume at prices slightly lower--$43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck delivered into Houston; but with prices only slightly below US domestic spot prices, US import activity for flat steel in general is minimal.

**DDP loaded truck delivered into Houston