US import HDG prices rise while Galvalume offers begin to waver

The US import hot dipped galvanized (HDG) and Galvalume coil market's divergent trends have sustained once again over the last week. As expected, Indian mills have officially raised their offer prices to the US in the last week. New Indian offer prices to the US for HDG 0.019x41.5625 Gr80/AZ55 and HDG 0.012"x40.875" G30 are up about $1.00 cwt. ($22/mt or $20/nt) since last week, although only $0.50-$0.75 cwt. ($11-$17/mt or $10-$15/nt) of the increase is likely to hold. Demand for futures is stable, but not necessarily strong enough to absorb much of an increase considering orders placed today are set to arrive in the midst of the typically slow vacation season.

Some traders believe that import bookings could actually slow in the next few weeks given that there is now a downside risk to pricing. For Galvalume 0.019x41.5625 Gr80/AZ55, Taiwanese mills have shown some flexibility on their current offers of $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) DDP loaded truck in US Gulf ports. Mexican mills have also been wavering from their offer price range, and a large order could garner a discount. China, on the other hand, has held firm, and is unwilling to take orders below $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) DDP loaded truck in US Gulf ports.

*DDP loaded truck in US Gulf ports
**DDP loaded truck delivered into Houston